It’s about to be a new tax year. I have a plan for how I’m going to invest in ASX shares in FY22.
There is always something to worry about. But there are quite a few things to be concerned about in FY22.
There’s the ongoing threat of COVID-19, particularly when it comes to this new Delta strain.
Interest rates seem set to rise sooner rather than later.
Businesses are now cycling against strong consumer spending a year ago with government stimulus no longer flowing into the economy like it was a year ago.
Things don’t look as rosy as they did six months ago for the medium-term.
But I’m still planning to invest. I think shares have an attractive long-term future.
My investing plans
I think that there are still plenty of opportunities.
There are some ASX growth shares that have been heavily sold off which may still turn out to be solid investments. Shares like Redbubble Ltd (ASX: RBL), Kogan.com Ltd (ASX: KGN) and Adore Beauty Group Ltd (ASX: ABY).
I also believe some ASX shares that are embracing online sales can produce good shareholder returns (including dividends) like Nick Scali Limited (ASX: NCK) and Adairs Ltd (ASX: ADH) over the next five years.
I do plan on continuing investing. Volatility is usually a good thing because it presents an opportunity to buy some shares at a cheaper price.
It’s important to remember that all/most listed businesses are focused on growing profit. As an overall group, shares collectively continue to (usually) increase in value over the years.
Exchange-traded funds (ETFs) and listed investment companies (LICs) are both good ways to make diversified investments into a whole range of businesses.
Some of the ETFs that could make good long-term investments are Betashares Global Quality Leaders ETF (ASX: QLTY), BetaShares Global Sustainability Leaders ETF (ASX: ETHI) and VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO). There are also some high quality LICs on my radar.
