Building a truly well-balanced and diversified $100,000 ASX portfolio is a daunting task – and one that can take years. But the rewards are lucrative enough that I think all ASX investors should aspire to hit the 6-figure mark – whether that takes 5 years or 20.

But choosing the right shares across the right sectors is equally important. Here at the Fool, we are always preaching the benefits of diversification, of not having all of your eggs in one basket.

So in saying that, here are 10 ASX shares that I think would make the perfect (in my eyes, anyway) balanced portfolio with $10,000 invested in each.

Vanguard Australian Shares Index ETF (ASX: VAS) 

As a starter, I think this exchange-traded fund (ETF) forms a solid bedrock of an ASX portfolio. By having the largest 300 companies as holdings, VAS gives us instant diversification and a well-rounded foundation for our other companies to sit upon.

CSL Limited (ASX: CSL) 

The big dog of the ASX, I think it would be amiss to exclude CSL from any ASX-based portfolio. CSL is one of the best blue chips money can buy in my view. It’s a diversified healthcare giant that’s active on the global stage. It’s also the most growth-orientated ASX blue chip in my view and has been quietly building its dividend over the last few years. Therefore, I think an investment in CSL is a great place to have your money over the coming decade.

Woolworths Group Ltd (ASX: WOW)

A stalwart of ASX consumer staples and a highly defensive, mature business, Woolworths earns a place in our balanced portfolio today. It’s dominance of the Aussie groceries market and its familiar and powerful brand give this company an edge in my view and one that can protect your portfolio in any kind of downturn.

Telstra Corporation Ltd (ASX: TLS) 

Telstra is the dominant telco in Australia and commands a healthy market share across both fixed-line internet and mobile. Its mobile network is inarguably the best in the country and leaves its rivals like Optus and Vodafone/TPG Telecom Ltd (ASX: TPM) in the dust in my view. It’s also a healthy dividend payer, and I’m excited about its foray into 5G technology.

Macquarie Group Ltd (ASX: MQG) 

I’m not too excited about the ASX banks like Commonwealth Bank of Australia (ASX: CBA) right now, and so I think Macquarie is a great alternative. It does do traditional banking services like mortgages, but most of its business these days is in asset management and investment banking. Macquarie also pays a healthy dividend, but I think of this company as more a growth stock compared with the major ASX banks.

Wesfarmers Ltd (ASX: WES)

I don’t think we can have a balanced portfolio without including this conglomerate. Wesfarmers is already a highly diversified company. It owns the Bunnings, Target, Kmart and Officeworks chains, as well as a plethora of other businesses across different sectors of the economy. Most recently, it’s expanded into the lithium space with its acquisition of Kidman Resources. As such, I think Wesfarmers is one of the best blue chips on the ASX and a must for our portfolio.

BHP Group Ltd (ASX: BHP)

This year has already well and truly proved the value of holding ASX resources shares in my view. Big miners like BHP have held up remarkably well in the face of the coronavirus crash we saw earlier in the year. Commodity prices can be volatile, but they can also act independently of the rest of the economy, which can be a very handy cushion for a portfolio to have. BHP is one of the largest miners in the world, but also one of the most diversified. It has operations across the coal, oil, copper and iron ore spaces.

As such, I think the ‘Big Australian’ is a great stock to have in our $100,000 portfolio.

Altium Limited (ASX: ALU)

Altium is more of a high-growth, high-volatility share, but that’s why I think its a great inclusion in our portfolio. This company provides software that assists with the design of printed circuit boards – which are an essential component of most electronic devices. It’s been growing rapidly and has a very scalable software as a service business (SaaS) model to boot.

Afterpay Ltd (ASX: APT)

I would feel amiss if I didn’t include this superstar of an ASX company in our $100,000 portfolio. Yes, Afterpay is one of the most volatile shares on the ASX. We’re talking about a company that has had a ~470% swing in value over the last 3 months, after all. But I think Afterpay’s potential is too great to ignore and anyone who has ever bet against this company has always lost. As such, it joins our portfolio with aplomb.

Magellan Global Trust (ASX: MGG)

Our last share to finish off our portfolio is actually a listed investment trust (LIT). MGG invests in a basket of global shares, which include quality names like Microsoft, Alphabet and Tencent. I think all ASX portfolios should have at least some international exposure thrown in, and here MGG is a great candidate for the job in my view. It has a stellar track record of delivering for its investors and also has a top-notch fund manager in Magellan Financial Group Ltd (ASX: MFG)’s Hamish Douglass.

As such, I think this trust is a great stock to round out our $100,000 portfolio.

More reading

• 3 ASX dividend kings to buy and hold forever
• Got $20,000? These are the ASX shares I’d buy during COVID-19
• Here’s how you invest in super to get a free $500
• 12 top ASX dividend shares to buy in June 2020
• 3 ASX shares I’d buy if the market hits 23 March levels again

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Altium, and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers Limited and Woolworths Limited. The Motley Fool Australia has recommended Alphabet (A shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post How I would build a balanced portfolio worth $100,000 with 10 ASX shares appeared first on Motley Fool Australia.

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Do you have $20,000? There are some ASX shares that I’d love to buy for my portfolio to take advantage of the market selloff.

The ASX has fell quite hard over Thursday and Friday. Yesterday the S&P/ASX 200 Index (ASX: XJO) dropped by 1.9%. In morning trading it was down over 3%. Ouch.

This second selloff seems to have been caused by the comments made by US Federal Reserve boss Jerome Powell. He suggested that the US economy is going to take a while to recover. Some people may not be able to find jobs as quickly as they’d like to.

I think that the market declining is throwing up another opportunity to buy ASX shares at cheaper prices again. If I had $20,000 to invest, I’d go for these ASX shares:

Magellan Global Trust (ASX: MGG) – $6,000

I think Magellan Global Trust is one of the best listed investment businesses on the ASX. It aims for companies it thinks are the highest-quality in the world. These are businesses with excellent economic moats, coronavirus-resistant business models and strong balance sheets. It’s rare to find ASX shares that are as large and powerful as the businesses this listed investment trust (LIT) goes for.  

Some of the shares that it owns are: Alibaba, Alphabet, Microsoft, Tencent, Facebook, Visa, Mastercard, Reckitt Benckiser and Novartis. Many of these names offer digital services which can still be used even during lockdowns. A business like Reckitt Benckiser is a great idea today because it owns cleaning product brands like Dettol and Lysol.

The Aussie dollar is quite strong right now, making it cheaper to buy international shares. Magellan Global Trust is currently priced at a 5% discount to its net asset value (NAV).

Pushpay Holdings Ltd (ASX: PPH) – $4,000

Pushpay is one of my favourite small cap ASX shares. It’s an electronic donation business. Digital giving is in higher demand these days, particularly because of COVID-19 social distancing. We can see this change in demand from the growth that Pushpay is reporting. The fact that Pushpay offers a livestreaming option is very useful for its US church client base.

In the recent FY20 result Pushpay reported that its operating revenue increased by 28% to US$123.1 million, which excludes the Church Community Builder acquisition.

One of the most attractive things to me about this ASX share is that it continues to see improvement with its gross margin. FY20 saw an increase of five percentage points from 60% to 65% for the gross margin. This means that more of the revenue turns into profit for Pushpay.

In FY21 the company is expecting to approximately double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to between US$48 million to US$52 million.

Over the long-term Pushpay is targeting a market share of over 50% of the medium and large US church segments, which the company thinks is an annual revenue opportunity of more than US$1 billion. I think this ASX share has a long growth runway.

Future Generation Global Invstmnt Co Ltd (ASX: FGG) – $6,000

Future Generation Global is one of my favourite listed investment companies (LIC). It doesn’t charge any management fees or performance fees.

It invests in the funds of Australian fund managers who invest in overseas shares. These fund managers work for free. Why? So that the LIC can donate 1% of its net assets to youth mental health charities each year.

The LIC’s gross investment performance has beaten its MSCI AC World Index (AUD) benchmark over the past year, three years and since inception in September 2015. Some of the fund managers delivering this performance include Magellan Financial Group Ltd (ASX: MFG), Cooper Investing and Marsico Capital Management.

At the moment we can buy this ASX share at a 22% discount to the net tangible assets (NTA) at 31 May 2020.

Bubs Australia Ltd (ASX: BUB) – $4,000

Bubs is another exciting small cap ASX share in my opinion.

It has a range of goat milk products which are proving popular with consumers. Woolworths Group Ltd (ASX: WOW), Coles Group Limited (ASX: COL) and Baby Bunting Group Ltd (ASX: BBN) have all recently expanded their distribution footprint of Bubs products.

In the third quarter of FY20 Bubs achieved revenue of $19.7 million. This was 36% higher than the December 2019 quarter and 67% better than the March 2019 quarter.

The ASX share achieved a positive operating cashflow of $2.3 million last quarter and ended with a solid cash balance of $36.4 million. Positive operating cashflow makes Bubs a safer choice in my opinion. 

I think Bubs is definitely one to watch for its international growth. The last quarter showed Chinese revenue rose by 104%. It’s also growing strongly in Vietnam.

Foolish takeaway

I believe all four of these ASX shares can beat the ASX 200 over the next three to five years. I like the diversification that Magellan Global Trust and Future Generation Global bring. But I also think that Pushpay and Bubs are two of the brightest prospects on the ASX today.

More reading

• 3 ASX shares I’d buy if the market hits 23 March levels again
• Leading fund manager names 4 ASX stocks set to benefit from a faster re-opening of the Australian economy
• ASX 200 falls 1.9%, big 4 ASX banks retreat
• Down 20% in 7 trading hours… Worse to come?
• 3 fantastic ASX shares to buy and hold to make you wealthy

Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended BUBS AUST FPO and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Got $20,000? These are the ASX shares I’d buy during COVID-19 appeared first on Motley Fool Australia.

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