Why I believe these 2 appealing ASX shares could turn $5,000 into $15,000

These two names have fallen heavily but I think they could be big opportunities.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Some ASX shares have dropped heavily over the past two years, offering rebound potential
  • Australian Ethical is seeing ongoing funds under management (FUM) growth and expects increasing operating leverage
  • Betashares Asia Technology Tigers ETF is invested in a number of appealing businesses

There are plenty of ASX shares that have gone through significant pain in recent times. But it's worth noting when something has fallen heavily, it could present an excellent buying opportunity.

I like the look of investments that are delivering underlying growth of their businesses while their share prices are a lot cheaper.

In my opinion, investing $5,000 into the following ASX shares could lead to that amount growing to $15,000. That would represent growth of 200%.

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer

Image source: Getty Images

Australian Ethical Investment Ltd (ASX: AEF)

This ASX share has dropped by 78% since November 2021 when it was trading at around $14.70. It's currently $3.21 per share. The share price would only need to recover to around $9.60 to deliver that sort of capital growth.

The business is focused on providing people with investment options in businesses that are trying to provide a more sustainable, low-carbon future.

Despite the difficult operating conditions with volatile markets, the business is seeing growth in its funds under management (FUM). It also recently took on $1.93 billion of FUM from Christian Super members, boosting its scale.

It's expanding in a number of different ways, such as increasing its presence in the financial adviser channel and working on its product development pipeline.

This ASX share can benefit from regular superannuation contributions into the funds. The company is targeting revenue of more than $100 million and the business is expecting operating leverage to emerge.

Fund managers can be very scalable in that the same-size investment team can manage $7 billion almost as easily as $6 billion. This means profit margins can rise as the ASX share grows.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

This is an exchange-traded fund (ETF) that gives investors exospore to the largest 50 Asian technology companies outside of Japan. Since June 2021, the ETF unit price has fallen by more than 40%.

It has been a difficult period for Asian businesses, with uncertainties in China, higher interest rates, and global inflation impacts.

But this lower price for the overall group of businesses could mean it's a good time to invest in names like Samsung, Tencent, Taiwan Semiconductor Manufacturing, Alibaba, PDD, and Infosys.

Over the past ten years, the index that this ETF tracks has returned an average of 15% per annum. But, of course, past performance is not a reliable indicator of future performance

I think, generally, technology shares are very promising. Certainly, the large technology businesses in Asia could perform well in the long term as the Asian economy continues to digitalise.

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 Australian Ethical Investment, Taiwan Semiconductor Manufacturing, and Tencent. The Motley Fool Australia has recommended Australian Ethical Investment and Betashares Capital - Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
Opinions

Could July give the ASX 200 the push it needs after a quiet finish to June?

History suggests July could be worth watching for our local shares.

Read more »

Five young boys wearing small caps sit on a bench together watching a baseball game.
Opinions

5 ASX 200 shares I'd buy with $5,000 in July

I think these ASX 200 shares are now trading below fair value.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Opinions

2 ASX shares I plan to own until I'm 100

I expect to own these ASX shares for decades to come!

Read more »

Four people on the beach leap high into the air.
Opinions

4 ASX 200 shares I'd buy before the end of June

Want to add to your portfolio before the end of the financial year? Here are some ideas.

Read more »

A kid pulls his friends on a wagon in the backyard.
Opinions

3 ASX shares I'd buy and hold for my kids

The focus should be on reliable and trustworthy businesses, rather than the next flash-in-the-pan.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Opinions

Why I made this top ASX dividend share one of my biggest investments

This business ticks all of the boxes I'm looking for with passive income!

Read more »

the australian flag lies alongside the united states flag on a flat surface.
Share Market News

Why US stocks have hit record highs while ASX shares have barely risen in 2026

Drew Meredith, a principal advisor at Wattle Partners, explains the performance gap.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Opinions

I'd buy this ASX share because it offers almost everything an investor could want

This business ticks a lot of boxes!

Read more »