3 ASX shares for beginners to buy with $500

These shares are highly rated by analysts. Let's see why they could be top picks for beginners.

Starting your investing journey can feel overwhelming — but it doesn't have to be.

You don't need thousands of dollars or a background in finance to begin building wealth. In fact, with just $500, you can get started on the ASX with exposure to high-quality companies that have serious long-term potential.

The key is to focus on businesses you understand, with strong tailwinds, good leadership, and growth prospects that extend well beyond the next quarter.

With that in mind, listed below are three ASX shares that are beginner-friendly, future-focused, and worth a look if you're starting out with $500. They are as follows:

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ResMed Inc. (ASX: RMD)

ResMed is a global healthcare company specialising in sleep and respiratory care. Its devices and cloud-based software help millions of people manage conditions like sleep apnoea — a growing health concern worldwide.

For beginners, ResMed could be appealing because it operates in a defensive, essential industry, it has a long track record of growth, it is growing its recurring revenue from its digital ecosystem.

Goldman Sachs rates ResMed very highly. So much so, it has put it on its coveted Asia-Pacific conviction list with a buy rating and $49.30 price target.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX share for beginners to look at is Lovisa. It is a fast-growing global jewellery retailer, and one of the quiet achievers on the ASX. With around 1,000 stores and an expanding footprint across the U.S., Europe, Asia, and Africa, the company is executing a highly scalable international growth strategy.

Lovisa stands out for its strong brand and loyal customer base, its consistently high gross margins, and its ability to expand rapidly without taking on heavy debt. It is a great example of an Australian business succeeding on the global stage.

Morgans is a big fan of the company and has an add rating and $35.00 price target on its shares.

Telix Pharmaceuticals Ltd (ASX: TLX)

Finally, Telix could be a great option for a $500 investment. It is a rapidly growing radiopharmaceuticals company.

Its lead product, Illuccix, is already approved for prostate cancer and generating significant revenue, and it has a deep pipeline targeting other cancers. This gives it a long runway for growth over the next decade.

It is for this reason that Bell Potter is bullish on Telix. Its analysts have a buy rating and $34.00 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Lovisa and ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Lovisa and Telix Pharmaceuticals. 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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