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Have $2,000 to invest? Try these 2 ASX growth shares today

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If you have $2,000 to invest, I think it’s well worth looking at ASX growth shares.

Growth shares may not suit a retiree that relies on their ASX share portfolio to produce dividend income. But for a younger investor with a long time horizon ahead, I think having at least some growth shares in your portfolio is a great idea.

That’s because these are the kinds of shares that can offer real outperformance potential by virtue of their nature. So with this in mind, here are 2 ASX growth shares you can consider for a $2,000 investment today.

1) Xero Limited (ASX: XRO)

Xero is a cloud-based, software-as-a-service (SaaS) company. It provides its accounting software on a subscription basis, which has proven highly lucrative for the company. Over the past 5 years, Xero shares have rocketed from around $14 a share to more than $90 today.

This massive appreciation has been driven by both Xero’s rapid customer acquisition and the stickiness of its product. Put simply, lots of customers are trying out Xero’s products and most of them keep paying. Back in May, the company told us that subscription growth had come in at 26% for the 12 months to 31 March 2020. That helped push revenues up by 30%.

Of course, it’s hard to judge what the effects of the coronavirus pandemic will be for Xero. But government subsidies and support programs for individuals and businesses all need to be tracked and reported. As such, I think we won’t see any huge hits to Xero’s long-term viability. Considering all of this, I think Xero is a great ASX growth share to put $2,000 towards today.

2) Afterpay Ltd (ASX: APT)

By now, Afterpay should be a growth share every ASX investor is familiar with. Never far from the headlines it seems, Afterpay has had a year of share price insanity, for want of a better word. How else would you describe a company that, in the space of 6 months, goes from $30 a share to $40, down to $8, back up to $40 and then to $76? It’s probably a good time to warn you that this share can be volatile.

Even so, I’m pretty bullish on this company’s long-term future. It has pioneered a truly innovative product in buy now, pay later (BNPL). Not only that, but it has also managed to fight off a bevvy of potential competitors like Zip Co Ltd (ASX: Z1P) and Splitit Ltd (ASX: SPT) and kept it’s first-mover’s advantage.

It has also conquered the seemingly-impossible feat of cracking both the United States and the United Kingdom markets. Afterpay’s share price might look expensive right now, but I think this company’s potential growth runway can easily justify this. As such, I think Afterpay is another prime candidate in ASX growth shares for a $2,000 investment today.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero and ZIPCOLTD FPO. The Motley Fool Australia owns shares of 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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