Long-term investing in ASX shares could be the best way to allocate money because it gives strong investments a better chance to perform well.

But I wouldn’t want to invest in something that’s going to be mediocre for a long time; I’d only want to buy investments that could help grow my wealth over time.

Below are two ideas I’d feel comfortable owning for the next 10 years (and beyond).

TechnologyOne Ltd (ASX: TNE)

TechnologyOne describes itself as Australia’s largest enterprise software company with a global presence. It aims to provide end-to-end software as a service (SaaS) enterprise resource planning (ERP) for clients.

It has 1,300 leading corporations, government agencies, local councils and universities as clients.

The business has won several major clients recently, including the City of Townsville, Cardinia Shire Council, Liverpool City Council, Salisbury City Council, and City of Ryde Council.

The UK could be a strong area of growth for the business over the coming years. According to TechnologyOne, the UK local government sector is currently undergoing a transition period with the planned amalgamation of smaller councils to form larger, economically viable councils. It said in the FY26 result that its sales pipeline for local government in the UK remains strong and it thinks it will see accelerated growth from this sector in future periods.

The education is also growing, with annual recurring revenue (ARR) growth of 15% in FY26, with good wins like James Cook University. In the UK, it has won the University of Suffolk and Royal Holloway, University of London.

This business is aiming to reach at least $1 billion in ARR by FY30 from its base of $598 million. The company also thinks economies of scale could help it boost its profit-before-tax margin to at least 35% in the long term.

In the next decade, I think its earnings could rise significantly, making it good value today.

BetaShares Diversified All Growth ETF (ASX: DHHF)

The other investment I want to discuss is an exchange-traded fund (ETF) that aims to provide exposure to a diversified, low-cost ‘all-growth’ portfolio.

The idea of the portfolio is that it can provide exposure to global shares across a wide range of global exchanges.

Currently, it has a strategic asset allocation guideline of 37% to Australian shares and 63% to international shares across US shares, developed share markets (excluding the US) and emerging market shares.

The ASX share market allocation is similar to the US share market allocation, while the developed market (excluding the US) has a 15% allocation, and emerging markets has an approximate 7% allocation.

The markets that have the biggest exposure beyond the US and Australia, are Japan, Taiwan, China, Canada, the UK, South Korea and India.

I like how the fund can give exposure to a wide variety of assets with just a single investment, which I’d call very appealing for a long-term investment.

Since the fund’s inception in December 2020, it has returned an average of 11.8% per year.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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• Why I think these are the best ASX shares to buy and hold
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• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Following the announced Federal tax changes earlier this year, the attractiveness of ASX passive income shares may have shifted in investors’ minds.

In my view, listed investment companies (LICs) may be some of the best options to consider, as they can provide a combination of growing dividends, a large dividend yield and long-term capital growth.

Let’s run through why I think the two stocks below are so appealing for dividends.

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This LIC is managed by an impressive investment team, led by Paul Moore, Chief Investment Officer (CIO).

Having the global share market as a hunting ground is very helpful for generating returns, in my view, because there is a wide array of opportunities across sectors that the ASX can’t necessarily provide exposure to at a meaningful scale. Additionally, global stocks in sectors like banking and mining tend to trade at a lower earnings multiple than the ASX equivalent.

The five sectors that the ASX passive income share has the biggest exposure to European banks, industrial metal commodities, healthcare, industrials and leisure and entertainment.

The investment strategy has performed exceptionally well, with the net return being an average of 17.1% per year since the LIC’s inception in December 2013.

Those net returns have been more than enough for the LIC to pay a good and growing dividend.

Aside from FY23 when it maintained its annual payout, the business has increased its dividend every year since 2016. So, it has already provided a decade of reliable dividends, and I expect the good dividend track record to continue.

In FY26, it grew its annual dividend per share by 26% to 14.5 cents per share. It expects to hike its FY27 annual payout by at least 10% to 16 cents per share. That translates into a forward grossed-up dividend yield of 7.2%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

The other ASX passive income share I want to highlight is another LIC.

Future Generation Australia is a very different type of LIC. None of the fund managers involved charge management fees or performance fees – they all work pro bono (for free) – so that the LIC can donate 1% of its net assets each year to youth charities.

The fund is invested in more than a dozen funds that invest in ASX shares. The underlying portfolio is invested in hundreds of ASX shares, providing more exposure to smaller, faster-growing shares than the S&P/ASX 200 Index (ASX: XJO) does.

It’s able to provide excellent diversification and less volatility than the wider market, partly thanks to its cash weighting.

The LIC has increased its annual dividend every year since it began paying in 2015, an impressive, consistent record of payout growth.

It expects to pay an annual dividend of 7.6 cents per share for 2026, which translates to a forward grossed-up dividend yield of 8.5%, including franking credits, at the time of writing. I expect the 2027 dividend will be larger, but I’m using the guided payout for my calculations.

$200 passive income per month

If someone is targeting $200 per month of passive income, that translates into an annual goal of $2,400.

Between the two picks I named above, the average dividend yield is 7.85%. Assuming equal investments in each stock, this would require a total investment of around $30,600 to generate that much passive income.

The post 2 ASX passive income share ideas I’d use to generate $200 a month in 2027 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session and dropped deep into the red. The benchmark index fell 0.9% to 8,672.5 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set for a better session on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 31 points or 0.35% higher. In the United States, the Dow Jones fell 0.6%, the S&P 500 dropped 0.45%, and the Nasdaq was 0.8% lower.

Oil prices jump

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4% to US$105.48 a barrel and the Brent crude oil price is up 2.65% to US$108.48 a barrel. This follows reports that Saudi Arabia has been forced to cancel some crude cargoes.

Lovisa shares upgraded

Bell Potter thinks that Lovisa Holdings Ltd (ASX: LOV) shares are attractively priced. This morning, the broker has upgraded the fashion jewellery retailer’s shares to a buy rating (from hold) with a steady price target of $27.00. It said: “Our TP remains unchanged at $27.00 given we make no changes to our forecasts while our target P/E multiple remains unchanged at ~29x on a blended FY27/28e basis. Post the market sell-off, we think the current valuation at ~22x FY27e P/E (BPe) which is a ~20% discount to LOV’s recent mid-cycle P/E as BPe of 28.5x appears attractive, and we upgrade our recommendation to BUY.”

Gold price falls

ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price pulled back again. According to CNBC, the gold futures price is down 0.45% to US$4,333.4 an ounce. Traders are betting on inflation spiking due to high oil prices.

Buy Netwealth shares

Bell Potter is also recommending Netwealth Group Ltd (ASX: NWL) shares to clients today. In response to its deal to acquire Paradino, the broker has retained its buy rating with a trimmed price target of $30.00. It said: “The impact from Paradino is limited. There is 10% adviser growth straight away and the price tag is fair for what could be a transformational strategic move. Trading on 33x, NWL continues to offer strong revenue growth potential at a discount to its prior TTC valuations. Buy.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Santos shares slide from fresh multi-year high: What’s next for the ASX energy stock?
• ASX 200 drops again as selling continues
• Santos shares are up 40% in 2026. Here’s why I’d still buy them today

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.