How investing in ASX shares could help you grow $10,000 into $100,000

There are a number of long-term opportunities on the ASX 200. If I had a spare $10,000 to invest in ASX shares, here is where I would put my money to work.

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If you have a spare $10,000 sitting in your account, putting it to work by buying ASX shares could help you substantially increase your returns over a short amount of time.

Sure, you could leave your spare change in your savings account and accumulate a paltry 1% interest per annum. However, choosing to invest could net you a tidy amount and make life that little bit easier.

Just rewind to the start of the year. Had you chosen to invest that $10,000 in ASX shares like Afterpay Ltd (ASX: APT) or Fortescue Metals Group Limited (ASX: FMG), you'd be sitting on a profit of 151% and 68%, respectively (at the time of writing).

These are just 2 examples of ASX shares that have soared in recent memory. I think that there are a number of long-term opportunities in the S&P/ASX 200 Index (ASX: XJO) and if I had a spare $10,000 to invest, here is where I would put my money to work.

Appen Ltd (ASX: APX)

A global leader focused on providing language technology data and services, Appen has shot for the stars these past few months. The Appen share price has jumped 69% since the beginning of 2020, and if you had bought and held Appen shares 5 years ago, you would have been rewarded with gains of almost 4,500%. Buying $5,000 of Appen shares in 2015 would have netted you an astonishing $217,108.

The company has been an integral partner to the biggest tech names in the world. Without Appen, I doubt Apple and Google would have become very successful with their digital voice assistants. The artificial intelligence (AI) industry has been booming during the coronavirus pandemic with sectors such as education, manufacturing and health increasing the use of AI applications. With its addressable market forecasted to grow exponentially over the next decade, Appen is in prime position to reap the rewards.

Appen reported that with over 1 million contractors mostly working from home, it expects to meet this year's earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance of $125–$130 million. The company has advised it will release its FY20 results on 27 August. I would happily snap up Appen shares at today's price (at time of writing) of $36.97.

Megaport Ltd (ASX: MP1)

This exciting mid-cap ASX share operates in the network-as-a-service space, providing bandwidth to allow customers to connect to cloud services and data centres, and has been gaining attention at an incredible rate. In the last 12 months, Megaport has seen its share price rise 72% and I think it won't stop there. Demand for its services has been exceptionally strong due to its cloud offering.

Megaport's most recently quarterly update included revenue growth of 66%, year-on-year. The company is focused on attaining profitability, and it is expected that the EBITDA break-even will be achieved by the end of FY21. Megaport does have healthy cash balance of $166.9 million to see it through any unexpected turbulence.

The company's FY20 results will be announced on 19 August. Megaport shares are currently trading at $12.98, up 0.7% for the day. I would class Megaport as a buy at today's price.

Pointsbet Holdings Ltd (ASX: PBH)

The Aussie wagering group has been on tear recently with a number of positive announcements, sending the Pointsbet share price up more than 33% in the last 3 months. Last week, the company advised the market that it secured a raft of multi-year partnerships with Pacers Sports & Entertainment, Kroenke Sports & Entertainment (KSE) and an agreement with Twin River Management Group.

As the sporting industry slowly starts to come back to life, these lucrative arrangements will no doubt set PointsBet on a pathway to profitability. With its FY20 results expected to be released later this month, I think that today could be a great time to pick up some shares. At the time of writing, Pointsbet shares are valued at $6.23 and I would pick up shares without hesitation.

Foolish takeaway

Regular investing in high-quality ASX shares can reap big rewards in the future. I think that all of these shares are trading at attractive prices for a long-term diversified investor. I would snap up all 3 today and hold for at least a decade.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Pointsbet Holdings Ltd. 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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