Here’s where I would invest $5,000 in ASX shares

$5,000 is a meaningful amount to invest in ASX shares. But it may not be enough to build a 20-stock portfolio without ending up with tiny, brokerage-eroded positions in each.

The smarter approach with this kind of capital is to concentrate on a small number of high-conviction ideas that together provide a sensible balance of quality, value, and growth.

Here is exactly where I would put $5,000 in ASX shares right now, and why.

$2,500 in Commonwealth Bank of Australia (ASX: CBA)

The largest single allocation in my $5,000 portfolio would go to Commonwealth Bank of Australia.

CBA is Australia’s largest bank by market capitalisation, with a dominant mortgage book, the most widely used banking app in the country, and a track record of consistent, fully franked dividend growth.

In the first half of FY2026, CBA posted statutory net profit of $5.41 billion, up 5% year-on-year, alongside a fully franked interim dividend of $2.35 per share.

CBA is not the cheapest stock on the ASX, trading at approximately 26 times forward earnings, but quality of this calibre rarely comes cheap.

For a core, lower-risk allocation designed to anchor the rest of the portfolio, CBA is hard to overlook.

$1,500 in CSL Ltd (ASX: CSL)

The second allocation would go toward CSL, and this is the contrarian part of the portfolio.

CSL shares have crashed approximately 60% from their all-time high.

This has been driven by a series of earnings downgrades, plasma collection normalisation issues, and leadership uncertainty following the appointment of an interim CEO.

CSL now trades at approximately 14 times forecast FY2026 earnings, a valuation it has not traded at since before the pandemic era re-rating.

Three separate company directors have bought CSL shares on market in recent weeks, a meaningful signal of insider confidence.

This allocation carries higher risk than CBA, but the combination of an irreplaceable global market position and a deeply discounted valuation makes it worth a smaller, dedicated position.

$1,000 in the Betashares Nasdaq 100 ETF (ASX: NDQ)

The final allocation would go toward the Betashares Nasdaq 100 ETF, giving the portfolio geographic and sector diversification beyond the ASX.

NDQ ETF provides exposure to 100 of the largest non-financial companies listed on the Nasdaq. This includes the world’s dominant technology and AI infrastructure businesses.

Concentrating an entire $5,000 portfolio in ASX-listed financials and healthcare would leave it with almost no exposure to global technology leadership, a gap NDQ closes in a single, low-cost trade.

Why this $5,000 allocation makes sense as a whole

The logic behind this $5,000 split is straightforward.

Half the portfolio sits in a high-quality, lower-risk Australian blue chip.

Thirty percent sits in a contrarian, deeply discounted opportunity with real turnaround potential.

Twenty percent sits in global diversification through an ETF, reducing the portfolio’s total reliance on the Australian market and the Australian dollar.

That mix balances conviction with prudence, which is exactly the balance a $5,000 portfolio needs to strike.

The risks worth acknowledging

This is a concentrated portfolio, and concentration cuts both ways.

If CSL’s earnings recovery disappoints further, that position could remain under pressure for some time.

If CBA’s premium valuation compresses due to a credit quality deterioration, the core holding could underperform the broader market.

Diversifying further across more individual stocks would reduce that concentration risk. This is at the cost of diluting conviction in the highest-quality ideas.

Foolish takeaway

$5,000 split across CBA, CSL, and NDQ gives an investor a genuine combination of quality, contrarian value, and global diversification.

It is not the only sensible way to deploy this amount of capital, but it reflects where I see the best risk-adjusted opportunities on the ASX.

The post Here’s where I would invest $5,000 in ASX shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX ETFs to help you sleep through market crashes
• Buy, hold, sell: CSL, Steadfast, and Wesfarmers shares
• How to know when a beaten-down ASX share is worth buying
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• If I invest $8,000 in CSL shares, how much passive income will I receive in 2027?

Motley Fool contributor Mark Verhoeven 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 CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.