Where to Invest $500 in 2 Growth Stocks for Beginners Starting Small

Beginning to invest has never been easier. Here are two growth stocks to buy with $500 for a long-term portfolio.

It is easier than ever to begin investing in stocks today. Most discount brokerages offer fractional share purchases, and many are starting to offer free trading commissions. It just means that you don’t need a tonne of capital to get started. In fact, as little as $500 can get you started building an investment portfolio.

dividend growth for passive income

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It’s easier than ever to start investing, but investing is never easy

Now, just because it is easy to start investing doesn’t mean investing is ever easy. This year alone is a testament that investing in stocks is a tough business. If you were a new investor in 2024, it seemed like stocks only ever go up. However, 2025 is a reminder that there are bear markets, too.

Every investor will be tested at some point. Sometimes, it is good to be tested early on. Also, bear markets can present great opportunities to buy stocks when they are cheap (or cheaper). If you are starting small, here are two growth stocks that could really deliver long term for your portfolio.

VitalHub: A Canadian software stock for growth

VitalHub (TSX: VHI) has been delivering really exceptional returns for shareholders as of late. Its stock is up 235% in the past three years and 443% in the past five years. It only has a market cap of $528 million, so there could still be plenty of growth ahead.

VitalHub provides specialized patient flow, patient management, and workplace efficiency solutions for the healthcare industry. Its stock price has excelled because it has delivered excellent financial results.

Revenues have risen by a 40% compounded annual growth rate (CAGR). Earnings before interest, taxes, depreciation, and amortization (EBITDA) have risen by a 39% CAGR. The company hit a cash flow inflection point a couple of years ago. The stock hasn’t looked back, and neither has the company.

It has made over 20 acquisitions in the past few years. However, it also has a development hub in Sri Lanka that helps it build and enhance the software that it offers cost-efficiently.

As of its fourth quarter, it had $56 million of cash. It just announced another acquisition in the U.K. for about $15 million.

Overall, this company has many hallmarks of a long-term compounder: a founder-led management team, a cash-rich balance sheet, services that benefit clients, and a great outlook for organic/acquisition growth.

Topicus.com: A tech stock with European exposure

Another growth stock a beginner may want to look at is Topicus.com (TSXV: TOI). With a market cap of $13 billion, it is much larger than VitalHub. While many growth stocks are down in 2025, Topicus has risen nearly 29% this year.

Topicus provides very niche software solutions to a variety of industries and sectors in Europe. In 2021, it was spun out of Constellation Software. It has very similar DNA.

It buys cheap software companies, reaps their cash flows, and invests in more software companies. It also has a strong development arm that has fuelled mid- to high single-digit organic growth.

Investors have flocked to Topicus for tech exposure outside of the United States. Its valuation is not cheap today. However, if it does sell off due to broader market volatility, it would be a great time to add to this stock for the long term.

Fool contributor Robin Brown has positions in Constellation Software, Topicus.com, and Vitalhub. The Motley Fool has positions in and recommends Topicus.com and Vitalhub. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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