If you’re just starting out with investing, you may not have tens of thousands of dollars to invest into the share market.
But I wouldn’t let that put you off starting your investment journey. This is because even small investments can grow into something meaningful over a long enough timeframe thanks to compounding.
For example, $2,500 invested in the share market each year for 20 years and earning a 10% return would grow into almost $160,000.
And if you’re able to increase your level of investments as the years go by and your earnings increase, you could grow your wealth materially more.
But which shares should you start with? I think you would be best looking long term and at companies which have the potential to grow their earnings strongly.
Two that tick a lot of boxes for me are listed below. Here’s why I would invest $2,500 into them:
Nearmap Ltd (ASX: NEA)
I think this growing aerial imagery technology and location data company could be a great place to invest $2,500. Nearmap provides high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools to businesses. It has a massive opportunity in a highly fragmented market and looks well-placed to grow it market share significantly over the next decade thanks to its high quality product offering.
Pushpay Holdings Group Ltd (ASX: PPH)
Another ASX share to consider investing these funds into is Pushpay. It is a donor management platform provider which is well-positioned to benefit from the digitisation of giving and the shift to a cashless society. It is aiming to capture a 50% share of the medium to large church market in the future, which represents a US$1 billion opportunity. If it delivers on this target, which I suspect it will, then it should drive strong earnings growth over the next decade.
And here are more exciting shares which could be stars of the future and great options for that $2,500…
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- 2 fast-growing ASX tech shares to buy right now
- 3 ASX shares to buy and hold for the next decade
- Why Nearmap and this ASX mid cap share could be strong buys
- $3,000 invested in these 2 shares could make you a fortune over the next 10 years
- The top ASX growth shares I would buy for the 2020s
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Start your investment journey with a $2,500 investment in these ASX shares appeared first on Motley Fool Australia.
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