How to build the perfect ASX share portfolio

How is it possible? Let's find out.

A panel of four judges hold up cards all showing the perfect score of ten out of ten

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

Building a strong ASX share portfolio is one of the best ways to grow long-term wealth.

But what does a perfect portfolio look like?

While there's no one-size-fits-all approach, the key is to focus on diversification, quality, and a long-term mindset.

If you're looking to construct a rock-solid portfolio, here's how I would do it.

The foundation

The backbone of any great portfolio is high-quality ASX blue chip stocks—companies with strong earnings, reliable dividends, and a proven track record. These stocks help provide stability, especially during market downturns.

Some of the best ASX blue chips right now might include:

  • Macquarie Group Ltd (ASX: MQG) – A dominant player in investment banking with strong dividend payments.
  • CSL Ltd (ASX: CSL) – A global biotech leader with a history of innovation and strong earnings growth.
  • Goodman Group (ASX: GMG) – An integrated industrial property giant with a world class portfolio and sizeable development pipeline.
  • Wesfarmers Ltd (ASX: WES) – Owner of high-quality businesses like Bunnings, Kmart, and Officeworks.

These stocks act as anchors, helping to reduce volatility while still delivering steady returns.

Don't forget ASX growth stocks

While blue chips offer stability, ASX growth stocks can supercharge returns over the long run. The key is finding businesses with strong earnings potential, innovative products, and a competitive advantage.

Some exciting ASX growth stocks to consider:

  • Pro Medicus Ltd (ASX: PME) – A fast-growing health imaging technology company dominating its market.
  • Xero Ltd (ASX: XRO) – A cloud accounting platform provider with an estimated total addressable market of 100 million small to medium sized businesses.
  • WiseTech Global Ltd (ASX: WTC) – A global leader in logistics software, expanding rapidly worldwide.

These companies may experience volatility, but over time, they have the potential to significantly increase in value.

ASX ETFs for diversification

To reduce risk and gain exposure to a broad range of industries, adding exchange-traded funds (ETFs) to your portfolio could be a smart move.

ASX ETFs allow you to own a large basket of shares with a single investment.

Here are a couple of strong ASX ETFs to consider:

  • Betashares Nasdaq 100 ETF (ASX: NDQ) – Provides exposure to the 100 largest non-financial companies on the Nasdaq exchange. This includes many of the largest tech companies in the world.
  • iShares S&P 500 ETF (ASX: IVV) – It invests in the 500 largest companies in the United States.

Using ASX ETFs alongside individual stocks could create a balanced portfolio with both stability and growth potential.

Stick to a long-term strategy

No matter how well you build your portfolio, staying invested is the most important part of the process.

By holding great businesses for years, you can take advantage of compound growth, which is one of the most powerful forces in investing.

Foolish takeaway

The perfect ASX share portfolio is arguably one that balances stability, growth, diversification, and income. By combining blue chip stocks, high-growth opportunities, and ETFs, you can build a resilient and profitable portfolio that stands the test of time.

Most importantly, stay patient and stick to your strategy through thick and thin.

Should you invest $1,000 in Aristocrat Leisure Limited right now?

Before you buy Aristocrat Leisure 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 Aristocrat Leisure 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 James Mickleboro has positions in BetaShares Nasdaq 100 ETF, CSL, Goodman Group, Pro Medicus, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF, CSL, Goodman Group, Macquarie Group, Wesfarmers, WiseTech Global, Xero, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Macquarie Group, WiseTech Global, and Xero. The Motley Fool Australia has recommended CSL, Goodman Group, Pro Medicus, Wesfarmers, and iShares S&P 500 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 well-dressed couple at a luxury resort celebrate successful life choices.
How to invest

Why investing $500 a month in ASX shares could make you rich

If you want to become rich, then this could be one way to do it.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
How to invest

Beginner investor? Here's a simple 3-stock ASX portfolio to get you started

You don't need to start with a big portfolio. Here's how simple it could get.

Read more »

Beautiful holiday photo showing two deck chairs close-up with people sitting in them enjoying the bright blue ocean and island view while sipping champagne and enjoying the good life thanks to Pilbara Minerals share price gains in recent times
How to invest

The easy way to build significant wealth with ASX shares

Here's the easy way to succeed in the investing world.

Read more »

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

How to become a millionaire by investing in ASX shares

It isn't as hard as you think to become rich with investing.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
How to invest

The power of compounding: What $1,000 a month in ASX shares could become

Compounding is your best friend in the world of investing.

Read more »

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

How to build a winning $250,000 ASX share portfolio starting from zero

These are the steps I would take to grow wealth with ASX shares.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
How to invest

5 Warren Buffett quotes to become a better ASX share investor

It could pay (literally) to listen to the Oracle of Omaha's words of wisdom.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
How to invest

The ASX is on sale! Here's how I'd build a portfolio for the next decade

This is what I would do if I were starting out again with ASX shares.

Read more »