Got $3,000? Here are 3 great ASX shares to buy

Do you have $3,000 to invest into ASX shares? Here are 3 great ideas to think about for your portfolio which could beat the market.

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Do you have $3,000 to invest into ASX shares? There are some great businesses out there that could be worth a spot in your portfolio.

It's impossible to say which direction the share market will go next. Crystal balls are in short supply!

But there is a bit more uncertainty at the moment than a few weeks ago. The Victorian COVID-19 outbreak continues to spread and there now appears to be an outbreak in New South Wales as well. In the US some businesses are being shut again with thousands of new confirmed cases in places like California, Texas and Florida.

Will the share market continue to climb a wall of worry? Or will new restrictions spook investors? Only time will tell.

Whatever happens next, I think investors will be well served by choosing businesses with compelling futures. Here are three great ASX shares to buy:

City Chic Collective Ltd (ASX: CCX)

The City Chic share price could be volatile over the next six months, but I think that this ASX share has a very compelling outlook for a 5-year investment horizon.

It's a fashion retail company which specialises in plus size clothing for women. The main brand is City Chic which has a retail store network across Australia and New Zealand of over 90 outlets. It also has marketplace and wholesale partnerships with major US retails like Macys and Nordstrom. City Chic also has a wholesale business with European and UK partners like ASOS.

City Chic sold a high level of product online in pre-COVID-19 times. Near the end of May the company said that its online sales grew by 57% whilst its retail outlets were closed. I thought this was impressive considering how much the company already sold online. 

I like the ASX share's plan to try to become a world-leader of plus-size clothing. It has made smart acquisitions with 'Avenue', which targets value-conscious women, and 'Hips & Curves' which is an intimates brand. There is also the potential of other acquisitions to grow its business and global customer base.

After today's drop, the City Chic share price is trading at 21x FY22's estimated earnings.

Magellan Global Trust (ASX: MGG)

This listed investment trust (LIT) tries to run a portfolio that can do well during good times and bad. At the end of June 2020, Magellan Global Trust's net performance since inception in October 2017 showed returns of 11.4% per annum, outperforming its global benchmark by 1.2% per annum.

The ASX share has both defensive and growth positions in its portfolio, so I think it's well suited for whatever happens next. At the moment its largest positions are: Alibaba, Alphabet, Atmos Energy, Microsoft, Tencent, Facebook, Visa, Mastercard, Reckitt Benckiser and Novartis.

The LIT aims for a distribution yield of 4% and it has a cash position of 18%. I think it would suit any investor's portfolio for the long-term. At the current Magellan Global Trust share price, it's trading at a 3% discount to its net asset value (NAV).

Bubs Australia Ltd (ASX: BUB)

The Bubs share price hasn't taken off recently like other ASX growth shares. I guess Bubs doesn't excite investors because it's not a technology stock.

There's plenty to get excited about with Bubs though. The business reported impressive growth in the FY20 half-year result. In the quarter ended 31 March 2020, Bubs revealed revenue of $19.7 million – this was up 67% on the prior corresponding period and up 36% on the previous quarter. In that same quarter, Bubs' infant formula revenue increased by 137%.

I think that Bubs is worth watching for several reasons. It's growing its profit margins, it is now operating cashflow positive and it is expanding its overseas distribution footprint.

In five years time I think Bubs could be a much bigger business if it keeps growing at a good double-digit rate.

Foolish takeaway

I believe that each of these ASX shares has a great future. I'd definitely be happy to invest $1,000 in each of them at today's prices. I think Bubs has the best chance of generating big returns, but Magellan Global Trust is invested in some very high quality businesses.

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. 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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