3 of the most promising ASX growth shares to buy

You can get strong diversification and growth by buying these 3 ASX shares, including Australian Ethical Investment Limited (ASX:AEF).

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If you're going to invest in individual shares I think it's best to go for the most promising growth shares or perhaps the most defensive.

Here are three ASX shares that I think would help diversify a portfolio whilst providing strong growth:

Australian Ethical Investment Limited (ASX: AEF

Australian Ethical is a fund manager that is trying to attract funds for management just like its competitors. However, where it's different is that it is actively trying to advocate for changes for the environment and society.

Its investment strategy focuses on businesses working towards a greener future such as renewable energy, recycling, sustainable products and so on. It specifically excludes coal, oil, weapons etc.

This strategy is attracting growing funds quickly, particularly from people who have chosen Australian Ethical as their superannuation provider.

Its share price has risen 157% over the past six months with the current bushfires making a lot of headlines.

Pushpay Holdings Ltd (ASX: PPH

Pushpay is a quality technology company, it facilitates electronic payments to not-for-profits as well as providing a community app.

Its main clients are currently large and medium US churches. As you can imagine, the congregations of these mega churches provide regular annual donations – this provides a good source of fairly recurring earnings for Pushpay.

Pushpay's profit margins are quickly growing which mean that profit is growing faster than revenue.

I think this could certainly be one to watch over the next few years as it adds more clients, improves its offering and grows its margins.

Altium Limited (ASX: ALU

I believe Altium could be one of the highest-quality shares on the ASX. It has a range of market-leading products for engineers to build the products, machines and vehicles of the future. Management want the electronic PCB software service Altium Designer to reach 100,000 subscribers over the next five years, which would see Altium lead the market.

Management are doing a great job of growing the business, profit margins are growing, the balance sheet remains debt free and dividends are growing every year at a fast rate. There's a lot to like in my opinion.

Foolish takeaway

Altium could be become a very large ASX tech blue chip one day, though Pushpay could be the best performer over the next few years in percentage terms. However, I have my eye on Australian Ethical because recent events could cause a faster rise of FUM.

Tristan Harrison owns shares of Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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.

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