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I would buy these ASX shares in October 2021

There are always some good quality ASX shares that could be worth looking at. October 2021 could be the month to jump on those ideas.

When you can find quality businesses at a nice price, then it gives investors a better chance of producing attractive returns over time.

Looking at the current opportunities, I think these ASX shares could be attractive ideas:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a leading business in the US when it comes to breast screening software and practice management solutions.

The ASX healthcare share already has a market share of around 33% in the US after both organic growth and acquisitions like MRS and CRA Health.

For me, one of the most attractive elements of the business is its incredibly gross profit margin. It was 91% in FY21, up from 86% in FY20. This means a lot of the new revenue can fall to the next level of the profit. As it gets bigger, it will become much more profitable.

A key part of future growth of the business is increasing its average revenue per user (ARPU) by selling a platform, not just a product. A lot of new sales are for two or three products, representing significantly increased ARPU. The business plans to upsell existing clients – evidence suggests a 200% to 300% increase in recurring revenue for those that upgraded.

Lung cancer screening is a growing focus of the business as well, which is another option for growth.

Future Generation Investment Company Ltd (ASX: FGX)

Future Generation is one of the more attractive listed investment companies (LICs) in my opinion. This could be an option in October 2021.

It doesn’t invest in individual shares. Instead, it invests its money in the funds of fund managers that invest in ASX shares. It only picks the best fund managers to work with, such as Bennelong, Paradice, Regal, Eley Griffiths, Sandon Capital, L1 Capital and Wilson Asset Management.

Those fund managers work for free so that Future Generation can donate 1% of its net assets each year to youth-focused charities.

The portfolio of investments have done well. Since inception in September 2014, the Future Generation portfolio has returned an average of 11.6% per year, compared to the ASX share benchmark return of 9.1% per year.

Another attractive feature of Future Generation is the dividend yield. Based on an annualised dividend of 6 cents per share, that translates to a fully franked dividend yield of 4.2%.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Jaz owns shares of Future Generation.
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