How to aim for a $1 million ASX share portfolio with just $270 a month

ASX shares can unlock excellent wealth.

Young boy looks shocked as he lifts glasses above his eyes in front of a stock market graph. representing three ASX 300 shares hitting 52-week lows today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX shares can be the key for Aussies to unlock pleasing wealth, and we don't need to invest a lot to (possibly) build a portfolio worth hundreds of thousands of dollars, or even $1 million.

Property has done well over the last decade, but it can be tough to start in real estate because of how large the deposit needs to be, as well as the expensive transaction costs.

With ASX shares, we can decide to invest a small amount (perhaps less than $1,000) for a very small amount of brokerage.

The first part of investing is having the cash to put towards businesses. That means spending less than we earn, one way or another.

Start investing in ASX shares

Aussies need to decide which online broker they want to go with. Ideally, it's with a broker that we can trust and one that has low brokerage fees.

Most brokers have a minimum investment of $500, so if we save $270 per month, I'd suggest that investors should think about investing, at most, once every two months. With interest rates now much higher these days, we can earn a decent return on cash sitting in a savings account, so it's okay to wait a month or two to invest.

Where I'd choose to invest

If I were looking to reach $1 million sooner rather than later, I would want to choose investments that I think can deliver good compounding returns over time.

Investing doesn't need to be complicated, we can choose exchange-traded funds (ETFs) that do the investing for us and that can enable our portfolio to deliver good results.

I'd back ASX-ETFs that are focused on quality businesses that have a track record of delivering good returns, though nothing is certain.

For me, there are a few ETF investments that I'd want in my portfolio, including Vaneck Morningstar Wide Moat ETF (ASX: MOAT) and VanEck MSCI International Quality ETF (ASX: QUAL).

The MOAT ETF is about investing in businesses that have competitive advantages that are more likely than not going to endure at least 10 years if not 20 years. It only invests in those high-quality businesses when they're at what's deemed to be a good price. Over the past five years, the MOAT ETF has delivered an average return per annum of 15.6%, though the past is not a reliable indicator of future returns.

I'd also consider ASX growth shares that may be able to deliver significant growth in their operations over the next 10 or 15 years. At the moment, I'd name ASX shares like Lovisa Holdings Ltd (ASX: LOV), Johns Lyng Group Ltd (ASX: JLG) and Temple & Webster Group Ltd (ASX: TPW) as ideas, but there are plenty of other possibilities which I'll regularly write about.

However, I wouldn't choose the highest-risk, small businesses – we don't need to go for highly speculative investments to do well.

Compounding returns

By looking at investments that may be able to deliver good capital growth, the long-term could help deliver pleasing numbers. I wouldn't expect to be able to deliver average returns of 15% per annum for the next decade (or three), but perhaps an average of 11% per annum may be possible.

If we invested $270 per month and the portfolio makes returns of 11% per annum, it would take around 34 years to reach a $1 million portfolio. To put that in perspective, that would come from $110,160 of our own cash put in and the rest would (theoretically) come from investment returns. You can play around with this compound interest calculator from Moneysmart.

My calculation assumes investing $270 per month over the whole time period, but if after five or ten years we could start investing $500 per month or $750 per month then $1 million would come much quicker. Finding strong ASX share investments can also help build a portfolio more quickly.

Should you invest $1,000 in Johns Lyng Group Limited right now?

Before you buy Johns Lyng Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Johns Lyng Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group, Lovisa, and Temple & Webster Group. The Motley Fool Australia has recommended Johns Lyng Group, Lovisa, Temple & Webster Group, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on How to invest

A young couple hug each other and smile at the camera standing in front of their brand new luxury car
How to invest

How to turn $100 a week into $500,000 with ASX shares

You don't need to invest large sums to become rich in the share market.

Read more »

Warren Buffett
How to invest

Warren Buffett's favourite holding period is forever, but there's a catch

Buffett is clear about what he wants.

Read more »

$100 Australian notes on top of each other.
How to invest

How to turn a $50,000 ASX share portfolio into a passive income machine

Here's how you could make the share market your own personal ATM.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
How to invest

How cash can make or break an investor's track record

Buffett has mastered the art of holding cash.

Read more »

Suncorp share price Businessman cheering and smiling on smartphone
How to invest

Why buy and hold investing with ASX shares could be your smartest move yet

Wealth building takes time but sure could be worth it.

Read more »

Happy young couple saving money in piggy bank.
How to invest

How to earn $12,000 of passive income from ASX shares each year

Want your own personal ATM? Here's how you can get paid by the share market.

Read more »

Happy young man and woman throwing dividend cash into air in front of orange background.
How to invest

The 2025 stock market selloff could be a once-in-a-decade opportunity to build wealth

Now could be a great time to grow your wealth in the share market.

Read more »

Business people discussing project on digital tablet.
How to invest

Is now a good time to start buying ASX shares?

Let's see if recent market volatility has created a buying opportunity.

Read more »