If you have $500 to invest in the share market, I believe you should be thinking long term.
This is because brokerage costs (which are usually around ~$10 a trade) will eat into your profits if you are constantly buying and selling.
With that in mind, here are three top ASX shares which I think could be fantastic buy and hold investments:
Afterpay Ltd (ASX: APT)
I think this payments company would be a great buy and hold investment. Due to the growing popularity of buy now pay later as a payment method with consumers and retailers and its global expansion opportunity, I think Afterpay has the potential to become a payments giant over the next decade. In addition to this, it is worth remembering that the company has signed a strategic partnership with Visa to support the development of innovative new solutions. This could be another driver of growth in the future.
Kogan.com Ltd (ASX: KGN)
A second option for that $500 investment could be Kogan. It is a growing ecommerce company and the home grown equivalent of Amazon. While the company may not be destined for global domination like Amazon, I believe it has the potential to grow enormously in the local market thanks to the ongoing shift to online for shopping. At present only ~10% of consumer spending is made online, but this is likely to grow materially over the next couple of decades. With this tailwind in its sails, the future looks bright for Kogan.
Pushpay Holdings Ltd (ASX: PPH)
A final option to consider is another payments company, Pushpay. It provides a donor management system to churches and non-profits. The company's sales have been growing at a very strong rate in recent years and look likely to continue doing so in the coming years. Management recently revealed that it has set itself a target of winning a 50% share of the medium and large church market. This represents a US$1 billion revenue opportunity for Pushpay and compares favourably to the operating revenue of US$127.5 million it recorded in FY 2020.
