Are you looking to buy some quality ASX options for long-term growth?

With the current share market volatility, some investors may be thinking that investing in shares is too risky.

However, I think it’s important to keep in mind share market volatility does happen from time to time.

Shares also have the advantage of providing capital gains, provided that you have a long-term investment horizon.

Also, dividend-paying ASX shares can set you up with a handy additional stream of income along the way.

So, with that said, here are two of my current top picks for long-term growth.

Commonwealth Bank of Australia (ASX: CBA)

Our big 4 ASX banks have had a difficult few months.

There all have witnessed major share price decline due to the impact of lockdown restrictions caused by the coronavirus pandemic. 

However, the outlook of our big 4 banks appears a bit brighter, with restrictions now beginning to ease.

Commonwealth Bank is my pick of the big four retail ASX banks right now.

I prefer it to rivals: Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). 

I believe the Commonwealth Bank share price was sold off a bit too harshly over the past few months.

It tumbled from $91.05 in mid-February to end below $60 earlier this week. However, its share price has regained a bit of ground over the past week.

I think the bank is well-positioned to deliver relatively solid long-term growth, driven by a recovering housing market, once lockdown restrictions are further eased.

This provides long-term investors with a good buying opportunity in my mind.

Telstra Corporation Ltd (ASX: TLS)

Australia’s largest telecommunication provider has witnessed strong demand for its services throughout the pandemic.

Both its mobile and fixed broadband offerings provide essential services to businesses and consumers. There’s been a sharp increase in usage with many Australians being forced to work from home.

Also, more people are keeping in touch with family and friends online, or increasing their usage of streaming media services like Netflix.

In a recent market update, Telstra revealed that it is on track to achieve most of the goals that form part of its T22 strategy. This includes reducing underlying fixed costs by $2.5 billion annually by the end of FY22.

Telstra also announced that it will increase its overall network capacity and accelerate the rollout of its 5G network.

I feel that Telstra was, to some degree, unfairly caught up in the wider market sell-off in recent months.

I believe that this now provides a good buying opportunity for ASX buyers with a long-term investment horizon.

More reading

• What to watch on the ASX 200 next week
• Beat low interest rates with these ASX dividend shares
• How to be an ASX 200 share millionaire in 15 years
• 2 ASX shares to buy for strong retirement income
• Westpac isn’t ruling out negative interest rates in Australia

Motley Fool contributor Phil Harpur owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Telstra Limited, and Westpac Banking. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.

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I generally prefer to invest in ASX growth shares rather than their dividend-paying cousins. As a long-term shareholder, ASX growth shares enable me to benefit from tax-free compounding over many years. With dividend shares, however, you are required to pay tax every time you receive a dividend. So even if those dividends are reinvested, this occurs using after-tax dollars.

With this in mind, below are 3 exciting ASX growth shares I believe to be buys next week.

Avita Medical Ltd (ASX: AVH)

Avita Medical develops and markets a range of respiratory and regenerative medical products. The first product Avita brought to market was a spray-on skin treatment used for burns victims named ‘Recell’. In addition to being TGA approved in Australia, Recell is FDA approved in the USA and CE-marked in Europe.

Avita recently released results for the March quarter, which were its strongest since launching in the US. This quarter saw its total revenue jump 67% over the prior corresponding period. This is boosted to an 84% revenue increase when the time frame is extended to the 9 month period ending 31 March 2020.

Avita has largely been insulated from the coronavirus-led economic fallout. This is predominantly because treatment for burns patients tends to be neither elective or deferrable. Furthermore, the company is looking to use the Recell system to treat vitiligo and has plans to submit an application to the FDA in June 2020.

Nearmap Ltd (ASX: NEA)

I can’t go past Nearmap when it come to ASX growth shares. The Aussie aerial imagery and data insights company has been consistently growing its subscriber base, particularly across its North American segment. It has also been steadily improving its average revenue per subscription. Furthermore, the company recently launched another new product with Nearmap AI.

On Tuesday this week, I wrote that I believed Nearmap’s shares were still a buy, despite having risen more than 100% over the past 2 months. Since then, they have jumped again following a positive market update. The update stated that the company’s churn had dropped and its annualised contract value (ACV) has continued to grow. Nearmap’s ACV now exceeds $102 million. Additionally the company advised it is on track to be cash flow breakeven by the end of June. No doubt, all this good news put some investors’ fears to rest. This resulted in Nearmap’s share price surging by a further 16.67% on Thursday. 

Despite the current price gains, I still see the potential for ongoing value with Nearmap shares. The world is a big place, and I believe Nearmap has plenty of runway to expand its current market segments and break into new ones.

Audinate Group Ltd (ASX: AD8)

My 3rd pick of ASX growth shares to buy next week is Audinate. This company develops an audio-visual, industry-leading, media networking solution, called Dante. A mouth-full, I know! But what Dante allows audio professionals to do is use standard Ethernet networks to deliver uncompressed, multi-channel, low-latency audio. This removes the need for expensive cabling and more rigid and complicated networks.

The solution’s wide-spread adoption by manufacturers has meant that more and more Dante devices are now able to be connected together. Additionally, a Dante network offers superior flexibility, with changes able to be made with the touch of a button.

As social distancing restrictions were implemented throughout the world, Audinate was wary of possible impacts to its revenue resulting from reduced demand. However, the company’s strong balance sheet and recent revenue growth have ensured its resilience through the worst of the pandemic’s economic fallout so far. As economies around the world begin to open up, I believe strong demand for Audinate’s product will deliver continued company and share price growth.

More reading

• Top brokers name 3 ASX shares to buy next week
• The Nearmap share price is up 123% in 2 months: Why I think it can go higher
• Brokers name 3 ASX 200 shares to buy right now
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises again, ASX banks push higher

Michael Tonon owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Nearmap Ltd. The Motley Fool Australia has recommended Avita Medical Limited. 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.

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If you’re looking for strong returns over the next decade, but small caps are too risky for your tastes, then you might want to take a look at ASX mid cap shares.

I think this is a great side of the market to look for investment ideas. This is because mid caps generally carry less risk than small caps, but offer stronger potential returns than large caps.

With that in mind, I have picked out four top mid cap ASX shares which I think would be top options:

Bravura Solutions Ltd (ASX: BVS)

The first mid cap ASX share to consider is Bravura Solutions. It provides software and services to the wealth management and funds administration industries. It has a number of different products in its portfolio, which are being used by many of the world’s biggest financial institutions. This includes the Sonata wealth management platform which allows users to connect and engage with their clients anytime, anywhere, via computers, tablets, or smartphones.

Collins Foods Ltd (ASX: CKF)

Another ASX mid cap share to consider is Collins Foods. It is one of the ANZ region’s largest KFC restaurant operators and also has a growing presence in Europe. It is these operations that I’m most excited about. Due to the under penetration of KFC in Europe, I believe there is a significant expansion opportunity over the next decade. And although the pandemic will inevitably slow its expansion plans, I expect it to accelerate again when the crisis passes.

Jumbo Interactive (ASX: JIN)

Jumbo is an online lottery ticket seller and the operator of the Oz Lotteries website. The company’s shares have come under pressure this year, which I believe has created a buying opportunity for investors. Especially given its target of $1 billion in global ticket sales annually through its platform by FY 2022. This will be triple what it achieved in FY 2019.

Kogan.com Ltd (ASX: KGN)

A final mid cap ASX share to consider buying right now is Kogan. The ecommerce company has been a strong performer during the pandemic and more than doubled its sales and earnings in April. I believe the pandemic has accelerated the structural shift to online shopping and puts Kogan in a very strong position to deliver strong growth in the coming years.

More reading

• 10 top ASX growth shares to buy in June for strong returns
• Why Afterpay, Austal, Kogan, & Northern Star shares are charging higher
• Build wealth for life with these 2 ASX 200 shares
• 10 quality ASX shares to buy in June
• Where to invest $10,000 into ASX shares immediately

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd, Collins Foods Limited, and Jumbo Interactive Limited. 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.

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If you’re looking for additions to your portfolio in June, then I think the three ASX 200 shares listed below would be great options.

I believe these shares are some of the best the ASX has to offer and could generate market-beating returns for investors in the future.

Here’s why I rate them as five-star stocks:

Appen Ltd (ASX: APX)

The first five-star stock I would consider buying is Appen. Through its million-plus team of crowd-sourced experts, Appen prepares the data that goes into the artificial intelligence (AI) and machine learning models of some of the biggest tech companies in the world. This includes the likes of Facebook, Microsoft, and Apple. In respect to the latter, Appen helped the tech giant develop its intelligent assistant, Siri. Given how important AI is becoming, I expect demand for its services to continue to grow over the next decade. This should underpin strong earnings growth for many years to come.

Nanosonics Ltd (ASX: NAN)

Nanosonics is another ASX 200 share that I would give five-stars. The infection control specialist has been growing at a very strong rate over the last few years thanks to the growing installed base of its trophon EPR disinfection system for ultrasound probes. The beauty of this product is that as its installed base grows, so too does the recurring revenue from the consumables it requires. While this product alone could drive strong earnings growth for the next decade thanks to its massive market opportunity, there will soon be more products in its portfolio. Nanosonics is planning to launch several new secretive products targeting unmet needs in the coming years.

REA Group Limited (ASX: REA)

A final five-star stock to consider buying is REA Group. It is a digital advertising company that operates Australia’s leading property websites. It also operates real estate websites in Europe, Asia, and the United States. While market conditions are tough at the moment, I expect the tide to turn once the crisis passes. When it does, I expect the realestate.com.au operator’s earnings growth to accelerate and drive its shares higher. All in all, I think REA Group is one of the best buy and hold options on the ASX.

More reading

• What to watch on the ASX 200 next week
• Why a stamp duty change could unleash the REA Group share price
• How to be an ASX 200 share millionaire in 15 years
• Where to invest $20,000 in ASX 200 shares today
• How you can get very rich with ASX 200 shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Nanosonics Limited and REA Group Limited. 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.

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The idea of investing $50,000 for income is an important task that should be carefully thought out. You can’t just pick any ASX dividend share.

Just look at what has happened to the dividends of National Australia Bank Ltd (ASX: NAB) and Telstra Corporation Ltd (ASX: TLS). Big cuts over the past few years.

I’d only want to choose the best ASX dividend shares with rock solid income prospects:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) 

Soul Patts is my favourite ASX dividend share. It has increased its dividend every year since 2000. It’s a unique income share when it comes to investing on the ASX. It has actually paid a dividend every year in its listed life going back to 1903.

It’s invested across a broad range of industries including telecommunications, pharmacies, building products and agriculture. It has already forecast an increased dividend in six months, which should bring some comfort to those who rely on dividends.

It pays the dividend out of the investment income it receives, less operating expenses, so the dividend is well funded. Some of the net cashflow is kept back to re-invest for more growth. It offers a grossed-up dividend yield of 4.5%.

WAM Microcap Limited (ASX: WMI)

It’s important to recognise that there are top ASX dividend shares outside of the ASX 20. Listed investment companies (LICs) have the ability to generate profits from capital gains made and then pay out a smoothed dividend for shareholders.

WAM Microcap invests in small shares with market capitalisations under $300 million. This hunting ground is where you can find some of the best opportunities. But you don’t need to do the work to find those ideas, you can leave it to the WAM investment team.

The LIC has been steadily growing its dividend since inception a few years ago. It currently offers a forward grossed-up dividend yield of 6.9%.

Brickworks Limited (ASX: BKW)

Brickworks is a diversified property business. I think it’s another of the best ASX dividend shares out there because it hasn’t decreased its dividend in over 40 years.

It has a high-quality group of building products businesses that supplies bricks, paving, masonry, precast, roofing and so on across Australia. It also owns a few brickmakers in the US after acquiring them recently. Long-term construction should remain a feature in the coming years.

But it’s okay that the coronavirus is causing disruption to construction right now. It can fund its reliable dividend from cashflow from the defensive industrial property trust it’s a part-owner of, as well as from its large shareholding in Soul Patts.

Brickworks currently offers a grossed-up dividend yield of 5.4%.

Rural Funds Group (ASX: RFF)

I think Rural Funds is quality ASX dividend share because of its consistent distribution growth. Management aim to increase the distribution by 4% every year.

The agricultural real estate investment trust (REIT) achieves this regular growth through contracted rental indexation and regular investing at its farms for productivity improvements for the tenant. This strategy is working particularly well with cattle farms right now.

It’s invested across a diverse array of farms including almonds, cotton, macadamias, vineyards and cattle.

It has already forecast a distribution of 11.28 cents for FY21, equating to a forward yield of 5.6%.

Future Generation Investment Company Ltd (ASX: FGX)

There are two big reasons to like Future Generation as an ASX dividend share.

The first is for its attractive grossed-up dividend yield of 7.4%. Paying a solid (and growing) dividend is one of the main aims of Future Generation. It has been steadily increasing the dividend over the past few years.

But the LIC doesn’t charge any management fees. Neither do the investment managers that Future Generation is invested in. Instead, it donates 1% of net assets each year to youth charities. I think that’s a great initiative to be a part of.

Foolish takeaway

If you don’t want to be buying or selling shares then I think the above five ASX dividend shares are great options. I’d happily invest $10,000 into each of them for long-term income. Hopefully all of them will grow (or at least maintain) the dividend during this difficult period.

More reading

• Beat low interest rates with these ASX dividend shares
• 10 top ASX growth shares to buy in June for strong returns
• How to make $1,000 a month in dividends
• 3 top ASX dividend shares to buy this June
• Why I just bought this ASX share for the long-term

Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, RURALFUNDS STAPLED, WAM MICRO FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. 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.

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When it comes to super funds, most Australians would agree that there are a million more interesting things to occupy one’s mind and time with.

Nonetheless, our superannuation represents our retirement and can determine how we spend our golden years. Thus, I think it’s something all of us should at least be on top of.

Now, most Aussies without a self-managed super fund (SMSF) have their super in either a retail or industry fund. Typically, these funds will put your hard-earned 9.5% in what’s known as a ‘balanced’ fund. Has a nice ring, doesn’t it?

But a ‘balanced’ fund is not quite as cosy as it sounds. It’s typically the super company’s default choice, and is named for the ‘balanced’ manner it invests your money. This is normally across many different asset classes like private equity, government bonds, cash, property and (of course) shares.

Now, this strategy is okay. Not brilliant, but okay for most people. For investors, particularly ones with long-time horizons, it’s normally not the best choice.

The benefits of indexing through your super fund 

Firstly, this is because investors with decades left until retirement will likely benefit from an aggressive portfolio allocation, rather than the plain-Jane, vanilla balanced super fund. Your fund doesn’t really need defensive asset protection through bonds and cash if you’re in your 20s or 30s. Instead, you should be primarily invested in growth assets like ASX shares, international shares or maybe property.

These investments are more volatile, sure – but they’re also more likely to generate the best returns. And getting the best return you can, for as long as you can, translates into more money for your retirement.

Secondly, a balanced fund is normally expensive. Not usurious, but expensive all the same. A far better option (in my view anyway) is to simply invest in index funds.

Not all superannuation funds offer an indexed option, but many do. And you’ll find the ones that do will be up to 10 times cheaper than the fund’s default ‘balanced’ option.

It costs far less to invest your money in a couple of simple exchange-traded funds, such as iShares Core S&P/ASX 200 ETF (ASX: IOZ) and perhaps the Vanguard MSCI Index International Shares ETF (ASX: VGS), than employ a fund-managing team. And that’s all an indexed option would typically do.

Not only do indexed options charge significantly lower fees, but they will also often outperform the balanced or even the ‘aggressive’ managed options, saving you money on two fronts. Remember, the difference between 1% and 0.1% over 45 years can be astronomical to a fund’s final balance.

Foolish takeaway

Now, these aren’t universal truths and you will need to do your own comprehensive research into whether this strategy would work for you. But it’s a strategy I personally use and one I think is worthy of consideration for anyone who wants to maximise their super fund’s potential.

More reading

• How to make $1,000 a month in dividends
• Why it could be the perfect time to buy this Vanguard ETF
• Buy these 4 ASX shares to diversify your portfolio
• Australian ETF market sets an all-time record amid COVID-19
• The importance of diversifying your ASX portfolio and how you can do it

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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.

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