The best ASX growth shares are the ones that are going to make strong returns for your portfolio over the years. I'd buy these top ideas in June that will hopefully create those excellent market-beating returns this decade:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is one my favourite ASX growth shares now. Pushpay is an electronic donation business which is currently focused on the US medium and large church sector. The coronavirus is causing more churches to promote electronic giving, particularly in places where people can't congregate yet. In FY21 the company is expecting earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital Investments is one of the best globally-focused listed investment companies (LIC) in my opinion. Chris Mackay owns a lot of MFF Capital shares and he has expertly guided the LIC to strong returns over the past decade. It currently has a large cash position which can be used for protection or opportunities over the coming months, whatever happens with COVID-19. It has large holdings of excellent the payment businesses Visa and Mastercard.
Bubs Australia Ltd (ASX: BUB)
Bubs is another of my favourite ASX growth shares right now. It produces and sells a variety of goat milk products. There are two key aspects I'm looking at right now, aside from the obvious stellar revenue growth. The first is that it's rapidly expanding its distribution outside of Australia. Vietnam and China alone are two large markets which are producing attractive growth for Bubs. The other aspect is that its operating cashflow was positive last quarter, so it's a safer prospect from here.
Magellan Global Trust (ASX: MGG)
I wouldn't describe many of Australia's blue chips as top ASX growth shares. So what we can do is choose to put our money in investment picks which give that exposure to leading growth shares overseas. I'm talking about businesses like Microsoft, Facebook, Alibaba, Visa, Alphabet and so on. This listed investment trust (LIT) just wants to invest in the best of the best in the world. It's pretty defensive too in normal market sell-offs.
Altium Limited (ASX: ALU)
Altium is another of my top ASX growth share ideas. Though it's priced quite highly at the moment considering potential COVID-19 impacts. Altium is an electronic PCB software business helping engineers design the products, devices and vehicles of the future. It's aiming for market dominance this decade and I believe it has the management and plan to do it. It has been growing its profit margins and cash on the balance sheet. It could be tough in 2020, but if the share price were to fall again I'd be looking to snap up some shares.
City Chic Collective Ltd (ASX: CCX)
City Chic is one of the most compelling retail ASX growth shares in my opinion. It has a very high proportion of sales that come from online. That's helpful to know that the customer base already knows how to get hold of the product. City Chic is growing internationally and I like the strategy of making international acquisitions as long as they are integrated well and can be adequately profitable.
Kogan.com Ltd (ASX: KGN)
Kogan.com is another exciting retail-related ASX growth share. During the coronavirus restrictions the company saw an enormous jump in sales volume last month. Ongoing growth might not be as strong going forwards, but it may help accelerate Australians to shop more online. I like the network effects that Kogan.com has where it can sell a variety of other affordable services to a growing customer base such as phone services, insurance and finance-related offerings.
A2 Milk Company Ltd (ASX: A2M)
A2 Milk has been one of the best ASX growth shares for some time. It has built a brand of quality and it happily relies on other companies to provide the materials and production, allowing A2 Milk to have high margins. With growth across Asia and North America, A2 Milk is one of watch. It also a very nice cash pile on the balance sheet too. I like that it's balancing short-term profit with investing for long-term growth.
WAM Microcap Limited (ASX: WMI)
Some of the best ASX growth shares are among the smallest. Small caps may not have the strongest economic moats in the world, but their small size means it's much easier to double in size than a business like Microsoft.
WAM Microcap has an excellent small cap investment team which is very talented at finding the undervalued stars. Before the coronavirus it had generated very strong investment returns.
It also comes with a very nice dividend. If WAM Microcap were to get too big it would become less effective at investing in small caps.
Duxton Water Ltd (ASX: D2O)
A water entitlement business wouldn't strike you as an ASX growth share. I believe there are two good reasons to consider it. The first is that water values are steadily rising over time. That's partly due to the drier weather. But also because there are more high-value crops that need more water, like almonds.
The other reason is that it's priced at a very large discount to its monthly net tangible assets (NTA) which gives a nice margin of safety even if water values were to drop in the short-term because of more rainfall.
Foolish takeaway
I like all of these ASX growth shares. At the current prices I'd buy Pushpay, WAM Microcap and Bubs. But I'd really like to buy them all for my portfolio.
