3 ASX tech shares I’d buy with $20,000

A $20,000 investment can go a long way in the ASX tech sector if it is spread carefully.

I would want a mix of businesses rather than three companies trying to win in the same corner of the market. That can help reduce reliance on one growth driver and give the portfolio exposure to different types of technology demand.

With that in mind, I would split $20,000 evenly across these three ASX tech shares that I think have attractive long-term prospects.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports is the smallest and most niche of the three.

The company provides performance technology for sporting teams, leagues, and athletes. Its products help customers track movement, workload, training intensity, injury risk, and tactical performance.

This is a very different kind of technology company from the usual software names on the ASX. Catapult is tied to the professionalisation of sport.

Elite teams are always looking for small advantages. They want players fitter, better prepared, and less likely to break down. They also want better data to support coaching decisions, recruitment, and match analysis.

That gives Catapult a useful role inside an industry where performance data is becoming more important.

What I like is that the business can grow with its customers. Once a team builds its training and analysis around a platform, it can become part of the daily rhythm of the club.

Xero Ltd (ASX: XRO)

Xero is a much larger and more established business, but I still think it has room to compound.

Its cloud accounting software is used by small businesses, accountants, and bookkeepers across multiple markets. That gives it exposure to a very large customer base and a service that many businesses need every month.

I think about Xero as a small business operating system.

Accounting is the starting point, but the broader opportunity is helping small businesses manage more of their financial lives in one place. Invoicing, payments, payroll, tax, reporting, cash flow tools, and advisory services can all sit around the core platform.

That can make Xero more useful over time.

Small businesses often do not have large finance teams. They need software that saves time, reduces errors, and helps them make better decisions. If Xero can keep improving the product while expanding in large overseas markets, I think the business could be materially larger in a decade.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global is the third ASX tech share I would buy with the $20,000.

Its CargoWise platform has a significant opportunity due to the growing complexity of global trade.

Moving goods around the world has become more complex. Companies are dealing with changing tariffs, shipping disruptions, customs rules, compliance requirements, and pressure to make supply chains more efficient.

That complexity can create demand for better logistics software.

WiseTech sits in a valuable part of the market because its customers need systems that help them run important workflows across borders. For freight forwarders and logistics providers, software is not just an administrative tool. It can affect customer service, compliance, speed, and profitability.

I believe this leaves WiseTech well-placed for growth over the next 10 years.

Foolish takeaway

I think Catapult Sports, Xero, and WiseTech offer three different ways to invest in ASX technology.

Catapult brings sports performance technology. Xero offers cloud software for small businesses. WiseTech provides exposure to the growing complexity of global trade.

All three shares could be volatile, and none is guaranteed to outperform. But if I were investing $20,000 into ASX tech shares with a long-term view, these are three names I would be happy to consider.

The post 3 ASX tech shares I’d buy with $20,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.