How to turn $5,000 into $750,000 on the ASX

SEEK Limited (ASX:SEK) shares are one of three that could be worth investing $5,000 into next month…

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If you have time on your side then I think it is well worth making a long-term investment plan.

The reason for this is that an investment of just $5,000 per year for 30 years would grow to be worth almost $750,000 at the end of the period if you can earn an average return of 9% per annum.

Incidentally, this is the approximate average annual return generated by the Australian share market over the last three decades according to Fidelity.

To help you make a start on the plan, I thought I would pick out three shares which could be great options for that first $5,000 investment. They are as follows:

Appen Ltd (ASX: APX)

At approximately 34x estimated FY 2019 earnings, I think Appen is great value for investors that are prepared to make a buy and hold investment. At this level I think the language technology data and services provider's shares offer investors a compelling risk/reward given its positive growth profile thanks to its exposure to machine learning and artificial intelligence markets that are expected to grow significantly over the next decade.

Bravura Solutions Ltd (ASX: BVS)

I think this software provider to the wealth management and funds administration industries could be a great long-term investment. Especially given the increasing popularity of its Sonata wealth management platform. I believe Sonata has an enormous runway for growth due to its sizeable addressable market and the overall quality of the product. This could put Bravura Solutions in a position to deliver above-average earnings growth over the next decade.

SEEK Limited (ASX: SEK)

Although SEEK is likely to deliver an underwhelming full year result in FY 2019, it is worth remembering that this is due to the job listings company investing heavily in its future. I believe these investments will make the company stronger and position it for solid long term growth. In light of this, I think it is well worth seizing on its recent share price weakness if you're willing to make a patient long term investment.

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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of Appen Ltd and Bravura Solutions Ltd. The Motley Fool Australia has recommended SEEK 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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