Australia is known for its assortment of companies relating to mining, energy, finance and healthcare. It's not so well known for its software or technology companies, except for a few bright sparks.
However, that doesn't mean you can't get access to some of the best tech companies in the world on the ASX. Obviously you can't buy Apple or Facebook on the ASX, but you can still get access to them through an Exchange Traded Fund, or ETF:
BETANASDAQ ETF UNITS (ASX: NDQ)
This is a fund run by ETF provider Betashares, which tracks the 100 biggest non-financial companies on the NASDAQ.
Its top five holdings by percentage are: Apple Inc. 11.7%, Alphabet Inc. (Google) 8.7%, Microsoft Corp 8.2%, Amazon Com Inc. 6.5% and Facebook Inc. 5.2%. These are some of the best companies in the world and I'm sure I don't need to tell you how much they have grown over the last 10 years.
Over the last 12 months this fund's return has been 12.02%, which is very satisfactory. It has a trailing dividend yield of around 0.5% and its management costs per annum are 0.48%. You wouldn't be buying this fund for the dividend, but for the potential long-term capital growth.
However, if you want an ASX-listed company instead of an ETF, here is one of the best options:
Altium Limited (ASX: ALU)
Altium is an electronic PCB software provider for engineers to build the products of the future with today's design technology.
With products from toasters to cars becoming more innovative every year, they require more complex design and computing, which Altium is helping organisations like NASA, Microsoft and BMW create with its software.
Altium has been one of the best shares on the ASX over the last two years, with the share price growing by 169%. Although I don't expect Altium shares to grow as fast over the next two years, I think it could still grow faster than most. In 10 years' time it could grow quite substantially if Altium's predictions about growth come to fruition.
Altium is trading at 25.9x FY17's estimated earnings with a trailing partially franked dividend yield of 2.44%.
Time to buy?
I think at these prices, both of the above investments will make great long term choices. In fact these companies may, in the long run, turn into good income stocks too as the dividends grow quickly. However, if tech stocks aren't your thing, then this fast-growing business could be your perfect investment.
