There certainly are a large number of growth shares for investors to choose from on the ASX.
Three which I think are among the best the local market has on offer are named below. Here's why I would buy them:
Bravura Solutions Ltd (ASX: BVS)
The first ASX growth share to consider buying is Bravura Solutions. It is the financial technology company behind the Sonata wealth management platform. This increasingly popular wealth management platform allows financial advisers to connect and engage with clients via computers, tablets, or smartphones. In addition to this, the company has been on an acquisition spree over the last couple of years and now has a collection of software solutions with large addressable markets. Combined, I believe Bravura is well-placed for growth once the pandemic passes.
NEXTDC Ltd (ASX: NXT)
Another ASX growth share to consider is this leading data centre-as-a-service provider. I've been very impressed with the way the company has been performing over the last few years. For example, NEXTDC's customer numbers have grown at a compound annual growth rate (CAGR) of 21% over the last four years. Pleasingly, not only are its customer numbers rising, but the number of services they are using has also been rising. This has led to its interconnections increasing at a CAGR of 31% over the same period. Management notes that this has been driven by the increasing use of hybrid cloud and connectivity inside and outside its data centres due to customers expanding their ecosystems. The good news is that the seismic shift to the cloud is continuing to accelerate. I believe this leaves NEXTDC well-positioned to deliver strong earnings growth over the next decade.
Xero Limited (ASX: XRO)
A final ASX growth share to consider buying is Xero. I think this cloud-based business and accounting software provider has the potential to grow its earnings at a very strong rate over the coming years thanks to the quality and stickiness of its platform. And while the company has almost 2.5 million subscribers using its platform, this is still only a fraction of its overall market opportunity. Management notes that less than 20% of its global English-speaking target market is using cloud-based accounting software currently. This compares to 50% in the ANZ market. Given the overwhelming benefits of this type of software, I expect more to shift to the cloud in the coming years.
