ASX shares to buy now: How I’d invest a $1,000 lump sum

A $1,000 lump sum can be invested in a few different ways.

I do not think there is one perfect answer for every investor. The best choice depends on what someone wants from their portfolio.

Some investors may want income. Others may want long-term growth. Some may prefer the simplicity of an exchange-traded fund (ETF) instead of choosing an individual company.

With that in mind, here are three ASX options I would consider today.

Transurban Group (ASX: TCL)

If I were investing for passive income, Transurban would be one ASX share I would look at closely.

The company owns and operates toll road assets in major cities across Australia and North America. These are long-life infrastructure assets that can generate cash flows over many years.

I like Transurban because its roads are hard to replicate. Building major urban toll roads is expensive, politically difficult, and usually takes many years. That gives the company a strong position in the markets where it operates.

It also has some inflation-linked qualities through its tolling arrangements. That can be useful for investors looking for income that has the potential to grow over time.

WiseTech Global Ltd (ASX: WTC)

If I were investing for growth, I would consider WiseTech.

The logistics software company has had a painful share price fall from its highs, but I still think the long-term business is very attractive.

WiseTech’s CargoWise platform is used by freight forwarders and logistics providers to manage complex global trade workflows. This is not a simple app that customers can casually replace. It sits inside important daily processes involving customs, documentation, compliance, shipments, and supply chains.

That is one reason I like the business. Global trade is complicated, and I do not think that complexity is going away. If anything, global trade could get more complex in the future.

I also think artificial intelligence (AI) could become useful for WiseTech. Logistics still involves a lot of repetitive data entry, document handling, and exception management. If AI helps customers save time and reduce errors, WiseTech’s platform could become even more important.

VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)

If I wanted an ETF, I would consider the VanEck Morningstar Wide Moat AUD ETF.

The MOAT ETF gives investors exposure to US companies that have sustainable competitive advantages and are trading at attractive valuations.

I like that combination. It is not just buying the biggest companies. It is trying to own businesses with durable advantages, such as strong brands, cost advantages, network effects, or high switching costs.

That can be a useful way to invest for the long term without needing to pick individual US shares and mirrors the style of investing used by Warren Buffett.

Foolish takeaway

A $1,000 lump sum can be used in different ways depending on the job an investor wants it to do.

That is the key point for me. I would start by asking whether I want income, growth, or a diversified ETF.

Once that is clear, the choice becomes much easier. For my money, these three options each offer a sensible way to put fresh capital to work today.

The post ASX shares to buy now: How I’d invest a $1,000 lump sum appeared first on The Motley Fool Australia.

More reading

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• 3 of the best ASX dividend shares to buy in June
• MOAT vs QUAL: Which quality ASX ETF would I buy today?
• WiseTech shares crash 66% in 12 months. What’s next?

Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Transurban Group and WiseTech Global. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.