If you're looking to make your first investment in the share market, then you may be wondering where to put your funds.
The good news is that I believe there are a large number of quality ASX shares which have the potential to generate strong returns for investors.
Now, if you have just $500 to invest, then I would suggest you think long-term. This is because the brokerage fees you pay will eat into your returns if you are always buying and selling shares.
With that in mind, I have picked out three ASX shares I would buy. Here's why I think they would be great long-term options for a $500 investment:
Kogan.com Ltd (ASX: KGN)
The first ASX share to consider investing $500 into is Kogan. I think the rapidly growing ecommerce company could be a great long term option due to the accelerating shift to online shopping. This has underpinned explosive active customer, sales, and profit growth this year. Pleasingly, this strong form has even continued when retail stores reopened. This appears to be an indication that the pandemic has brought about a lasting change in consumer habits. In light of this, I believe Kogan is well-placed to grow its earnings at a very strong rate over the 2020s. This could be bolstered by value accretive acquisitions following its capital raising earlier this year.
Nearmap Ltd (ASX: NEA)
Another option to consider buying with the $500 is this aerial imagery technology and location data company. Nearmap has been growing very strongly over the last few years thanks to increasing demand for its services in the ANZ and North American markets. And while FY 2020 was a tough year because of a large customer churn event, I remain confident that its growth will accelerate over the coming years. Especially given its leading position in a highly fragmented market currently worth $2.9 billion per year. Furthermore, the company has the option to expand geographically in the future to increase its addressable market. I suspect it is only a matter of time before it is operating in the UK and Europe.
Pushpay Holdings Ltd (ASX: PPH)
A final ASX share to invest $500 into is Pushpay. It is a donor management and community engagement provider to the church market. Pushpay's platform has been growing in popularity with churches over the last few years as they embrace the shift to the cashless society and the digitisation of the church. So much so, Pushpay reported a 42% increase in customer numbers to 10,896 in FY 2020. This strong customer growth led to the company delivering even stronger sales and earnings growth for the year. And pleasingly, more of the same is expected in FY 2021 and in the years that follow. I believe this makes Pushpay shares one of the best options for a buy and hold investment.
