There are a couple of really good ASX growth shares that I’d want to buy for my portfolio in August 2021.
I believe that businesses delivering good growth is the way to achieve solid long-term returns.
These two ideas look like very interesting ideas to me:
Volpara Health Technologies Ltd (ASX: VHT)
Volpara looks like one of the best healthcare shares available for ASX investors. It’s involved in breast screening, with a recent focus on risk and genetics.
It ticks plenty of the boxes you’d like to see in a very promising business. It has a high and growing market share – the latest quarterly update showed an increase from 32% to 33% of US women who have had a breast screening.
Volpara has a very high gross profit margin. In FY21 it was 91%, up from 86% in FY20. The level of increase suggests that the margin could rise even higher over the next few years.
It’s growing at a fast pace. The ASX growth share’s FY21 subscription revenue increased by 99% to NZ$18.1 million. In its quarterly update for the first three months of FY22, subscription revenue rose another 38% to NZ$6.1 million (or 60% growth in constant foreign exchange rates).
Volpara is steadily growing its average revenue per user (ARPU) with plenty of upside ARPU potential from users using multiple Volpara software products.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is one of the leading listed investment companies (LICs) around.
It invests in a portfolio of high-quality international shares that have attractive prospects. Due to the fact that many of the holdings are ‘growth’ shares, I think MFF Capital certainly counts as an ASX growth share as well.
Some of its leading holdings include Visa, Mastercard, Amazon, Home Depot, Facebook, Alphabet and Microsoft.
There are a couple of other advantages to MFF. The ASX growth share has a fixed, low, operating case base. That means that in percentage terms, investors get to keep a lot of the returns in their portfolios.
Some LICs also have the flexibility to borrow to invest into shares. At the end of July 2021, MFF’s net debt position as a percentage of investment assets was 6.1%. That gives it the power to earn higher returns in rising markets.
At the latest MFF Capital share price, its share price is at a 13% discount to the monthly net tangible assets (NTA) per share – the underlying value of the share. That’s attractive to me.
There are also some other ASX growth shares that are attractive to me right now.
