Want to invest $10,000 in great ASX shares? I'd pick these 3

I think these are great opportunities to invest in.

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Key points

  • There are some great ASX shares that are worth investing $10,000
  • E-commerce businesses Temple & Webster and Frontier Digital Ventures are down around 50%, but have compelling long-term futures
  • Pacific Current’s portfolio of investment managers is growing, yet the share price is down

The ASX share market is presenting lots of opportunities to invest in during this volatile period. I think there are some great opportunities to pursue with $10,000.

It's not often that we get to invest at times of great market distress, so I think it's good to jump on those ideas while they're there.

Buying at a good price gives us a larger margin of safety to make pleasing returns. Investing at a good price can also boost the dividend yield if it's an ASX dividend share.

With that in mind, here are some of the names that look very attractive to me if I were investing $10,000.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a significant e-commerce player in the furniture and homewares segment of retailers. It actually sells over 200,000 products from hundreds of suppliers. This model allows for faster delivery times and reduces the need for the ASX share to hold inventory, enabling a larger product range. The company does have a private label range as well, which comes with higher margins.

The Temple & Webster share price has dropped around 50% over the past year, meaning it's now much cheaper than it was. I'm still very optimistic about the company's future. Short-term growth wasn't likely to keep going as strongly as during the COVID boom, particularly as inflation and interest rates bite.

But, the company is seeing positive signs for its earnings before interest, tax, depreciation and amortisation (EBITDA) margin and it's targeting an EBITDA margin of over 15% in the longer term.

Scale benefits are expected in a number of areas including with suppliers, private label, logistical efficiencies and other fixed costs.

By 2030, I think the ASX share could be making a lot more profit than the market is currently pricing.

Frontier Digital Ventures Ltd (ASX: FDV)

This business invests in, and has stakes in, leading online marketplaces in emerging markets.

For example, it is invested in the number one property portals in Uruguay, Paraguay, Bolivia, Chile, Colombia, Pakistan, Sri Lanka, Myanmar and Nigeria. It's also invested in the leading general marketplace in Central America, Morocco and Tunisia. This ASX share has stakes in the leading auto portal in Chile, Myanmar, the Philippines and Morocco.

In the company's recent FY22 result, it said that its full-year revenue, on an ownership basis, grew by 37% to $82.3 million. The underlying EBITDA also increased by $4.6 million to $6.5 million. It also said that, excluding one-off restructuring expenses, all three regions of Latin America, Asia and Middle East and North Africa (MENA) were operating cash flow positive.

The ASX share pointed to cost optimisation initiatives to benefit FY23 and beyond.

This company's founder and CEO was the general manager at REA Group Limited (ASX: REA) who helped it become the powerhouse in Australia that it is today.

The Frontier Digital Ventures share price is down around 50% over the past year.

Pacific Current Group Ltd (ASX: PAC)

This ASX share describes itself as a global multi-boutique asset management business that partners with "exceptional investment managers". It invests and helps with its capital, with custom-made economic structures and with strategic business development to help businesses grow.

It's invested in a number of fund managers including Nereus, Proterra, Astarte, Carlisle, ROC Partners, Victory Park and GQG Partners Inc (ASX: GQG).

The company's fund managers continue to see a rise in funds under management (FUM), while also experiencing ongoing positive net flows.

It's expecting "strong continued growth" of both management fees and performance fees. The larger the FUM grows, the more management fees the fund managers should generate. The ASX share is expecting to make additional investments in the FY23 second half.

Using the last two declared dividends, it has a grossed-up dividend yield of around 8%.

The Pacific Current share price is down around 20% from 26 October 2022.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Frontier Digital Ventures and Temple & Webster Group. The Motley Fool Australia has recommended Frontier Digital Ventures, REA Group, and Temple & Webster Group. 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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