If your risk profile allows for it, I think having a little exposure to the small side of the market can do wonders for a portfolio.
After all, the potential returns on offer at this side of the market are significant. Though, it is worth remembering that not all small cap shares were born equal and some will fail to live up to their potential.
Three small cap ASX shares which I believe can live up to their enormous potential are listed below. Here’s why I think they are good options for small cap investors:
Bigtincan Holdings Ltd (ASX: BTH)
Bigtincan is a provider of enterprise mobility software. This software allows sales and service organisations to increase their sales win rates, reduce costs, and improve customer satisfaction through improved mobile worker productivity. Last year it added to its blue chip customer base through agreements with sports giant Nike and global beauty retailer Sephora. I feel this is a testament to the quality of its product and bodes well for its performance in FY 2020 and beyond.
Serko Ltd (ASX: SKO)
Serko is a technology company focused on developing innovative solutions to address the challenges of corporate travel and expense management. The company is a market leader in its category and has over 6,000 corporations and travel management companies using its platform. At the last count, over US$4.5 billion of transactions were going through Serko’s platforms on an annual basis. I believe the growing popularity of its platform has put Serko in a position to generate strong revenue growth again in FY 2020 and beyond.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast and lung cancer. Thanks to the growing popularity of its software with radiologists across North America, it has been growing its recurring revenues at a rapid rate. I expect this positive trend to continue this year, especially given its recent acquisitions.
The post 3 quality ASX tech shares for small cap investors to buy appeared first on Motley Fool Australia.
And here are five more top growth shares which I think could generate strong returns for investors over the next decade.
Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BIGTINCAN FPO, Serko Ltd, and VOLPARA FPO NZ. The Motley Fool Australia has recommended BIGTINCAN FPO, Serko Ltd, and VOLPARA FPO NZ. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020