How I would invest $10,000 across ASX growth shares in May

With May now underway, I think this could be a good time to look again at ASX growth shares.

The past few months have been rough for parts of the market. A number of high-quality growth stocks have pulled back as investors worry about valuations, interest rates, and the potential impact of artificial intelligence.

But I think that kind of environment can create opportunities for investors with a longer time horizon.

If I had $10,000 to invest across ASX growth shares this month, these are three names I would consider.

Pro Medicus Ltd (ASX: PME)

I would start with Pro Medicus. This healthcare technology company provides medical imaging software to hospitals, radiology groups, and healthcare networks. It is one of the highest-quality growth shares on the ASX in my opinion.

What I like most is the nature of the product. Medical imaging is mission-critical. Hospitals and radiologists need fast, reliable, secure systems to manage huge volumes of imaging data. Once a platform is deeply embedded, switching is not something customers are likely to do lightly.

That gives Pro Medicus a strong competitive position.

The other part I find appealing is the global opportunity.

The company has already won major contracts in the US, but I still think it is early in its international growth story. The US healthcare market is enormous, and Pro Medicus has only captured a small portion of what could be available over the long term.

For me, this is the kind of business I would be happy to own for many years, even if the valuation can be demanding at times.

I would consider putting around $3,500 into this one.

Hub24 Ltd (ASX: HUB)

Next, I would look at Hub24. It operates an investment and wealth management platform used by financial advisers and their clients.

It may not sound as exciting as some technology names, but I think the growth story is very strong.

Australia’s wealth management industry is still changing. Advisers continue to move toward modern platforms that offer better functionality, flexibility, and efficiency. Hub24 has been one of the clear winners from that shift.

What I like about the business is the way scale can improve the economics over time.

As more funds move onto the platform, revenue can rise without costs needing to grow at the same pace. That creates operating leverage, which can support stronger earnings growth over time.

I also think Hub24 benefits from being embedded in adviser workflows. Once advisers build their processes around a platform, it can become sticky.

For me, that makes Hub24 a strong structural growth story rather than just a cyclical winner.

I would consider investing around $4,000 here.

SiteMinder Ltd (ASX: SDR)

The final ASX growth share I would include is SiteMinder.

SiteMinder provides software for hotels, helping them manage bookings, distribution, and revenue across multiple channels.

The travel industry continues to recover and evolve, and hotels increasingly need digital tools to compete. Managing rooms across online travel agents, direct bookings, and different markets is complex. SiteMinder helps simplify that process.

What appeals to me is the size of the global opportunity.

The hotel industry is highly fragmented, and many accommodation providers are still upgrading their systems. That gives SiteMinder a long runway if it can keep winning customers and expanding revenue per property.

It is also a business with recurring revenue characteristics, which I generally like in ASX growth shares.

There are risks, especially around competition and execution, but I think the long-term opportunity is attractive.

I would consider putting around $2,500 into SiteMinder.

Foolish takeaway

If I were investing $10,000 across ASX growth shares in May, I would want a mix of quality, structural growth, and long-term optionality.

That is why I would consider splitting it across Pro Medicus, Hub24, and SiteMinder.

Each business is exposed to a different part of the economy, healthcare technology, wealth platforms, and hotel software. That gives the portfolio some useful diversification while still keeping the focus on growth.

The post How I would invest $10,000 across ASX growth shares in May appeared first on The Motley Fool Australia.

More reading

• 10 excellent ASX shares to buy in May
• Why these ASX shares jumped 15%+ in April
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• These beaten down ASX 200 tech stocks could rise 55% to 60%
• Down 30%, why this ASX 200 stock could be a strong buy

Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Hub24 and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.