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New investors could invest $1,000 into these top ASX shares

While investing $1,000 into the share market may not seem like it will change your life, it certainly can if you do it frequently on a long-term basis.

For example, if you were to invest $1,000 into ASX shares every three months ($4,000 per year), and continued doing this for 30 years, you could amass a small fortune.

Based on an average total return of 9.2% per annum, these investments would grow to be worth approximately $620,000 after 30 years.

Think you can afford a little more? Invest $2,000 every quarter ($8,000 a year) and at the end of the period you would have just under $1.25 million.

With that in mind, I thought I would pick out three top shares which I think could be great options for that first $1,000 (or $2,000) investment. Here they are:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company would be a great option for that first $1,000 investment. Although the infant formula and fresh milk company has been growing at a very strong rate over the last few years, I believe it still has a long runway for growth. Especially given the increasing demand for its infant formula products in the China market. Another positive is that the company has a sizeable cash balance which could be used to boost its growth through earnings accretive acquisitions.

Afterpay Ltd (ASX: APT)

I think this payments company could be a great long term investment option for that $1,000. I believe Afterpay is well-positioned for strong growth over the next decade thanks to the growing popularity of buy now pay later with consumers and merchants, the accelerating shift to online shopping, and its international expansion opportunity. All in all, I believe Afterpay is on a path to becoming a giant of the payments industry.

CSL Limited (ASX: CSL)

A final option for a $1,000 investment is this global biotherapeutics giant. Thanks to CSL’s portfolio of high quality therapies and vaccines and its high level of investment in research and development, I believe CSL is well-positioned to continue growing its earnings at a solid rate for a long time to come. And with the CSL share price down almost 20% from its high, now could be an opportune time to invest.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk and AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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