Australian Foundation Investment Co Ltd (ASX: AFI), widely known as AFIC, has shared its recent portfolio activity in an investor presentation, revealing a mix of income and growth additions to its ASX share portfolio picks. The moves offer a valuable signal for investors looking to understand where experienced, long-term capital is being deployed across the ASX 200 right now.
Figure 1: Logo of Australian Foundation Investment Company (AFIC) [Courtesy: TradingView]
AFIC is the largest and one of the oldest listed investment companies in Australia. The Company aims to provide shareholders with attractive returns through a growing stream of fully-franked dividends and long-term capital growth, making its portfolio decisions among the most closely watched in the local market.
What AFIC’s Latest Moves Reveal About the Best ASX 200 Stocks for Income and Growth
A Veteran Investor With a Long-Term Lens
AFIC’s investment team has decades of experience selecting top ASX shares to invest in across both income and growth categories. The Company holds a blend of dividend-paying businesses and higher-growth names, with the goal of delivering returns that compound meaningfully over the medium to long term.
The recent presentation was notable not only for what AFIC bought, but also for what it sold. The Company trimmed or exited positions in National Australia Bank Ltd (ASX: NAB), Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), ALS Ltd (ASX: ALQ), Sonic Healthcare Ltd (ASX: SHL), and Telix Pharmaceuticals Ltd (ASX: TLX). The exits suggest a deliberate rotation away from several major financials and healthcare names.
The Four Income Buys: Best ASX 200 Stocks for Income in 2026
Reliable Earners Across Retail, Supermarkets, Technology and Telecommunications
AFIC identified four additions to its portfolio as income-focused positions, each representing a business with a track record of paying consistent dividends to shareholders.
The first is JB Hi-Fi Ltd (ASX: JBH), the electronics and home appliance retailer operating JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and E&S. JB Hi-Fi has consistently returned capital to shareholders and benefits from a dominant position in consumer electronics retail.
The second income pick is Coles Group Ltd (ASX: COL), one of Australia’s two major supermarket operators. Coles offers the kind of earnings stability and regular dividend profile that suits an income-focused ASX share portfolio picks strategy well.
Figure 2: Illustration representing stock market growth and investment performance [Courtesy: Freepik]
Third, AFIC added Computershare Ltd (ASX: CPU), a global share registry and financial services business with diversified revenue streams and a strong international presence. The Company has grown its earnings base steadily and is considered one of the best ASX 200 stocks for income among technology-adjacent businesses.
The fourth income addition is Telstra Group Ltd (ASX: TLS), Australia’s largest telecommunications Company. Telstra’s fully-franked dividend and its dominant mobile network infrastructure make it a natural fit for investors prioritising income within their top ASX shares to invest in 2026.
The Six Growth Buys: Top ASX Shares to Invest in 2026 From the Tech Sector
AFIC Backs Technology Names for Long-Term Capital Growth
While the income picks spanned multiple sectors, all six of AFIC’s growth additions can be broadly described as technology businesses. The selections reflect a deliberate tilt toward digital platforms and software companies with strong recurring revenue profiles.
Figure 3: Australian Securities Exchange (ASX) market display showing index movements [Courtesy: Reuters]
The first growth pick is CAR Group Ltd (ASX: CAR), the online automotive marketplace business that owns Carsales. CAR Group has expanded significantly beyond Australia and now operates across multiple international markets, giving it a growth runway that extends well beyond domestic conditions.
Pro Medicus Ltd (ASX: PME) was the second growth addition. Pro Medicus is a leading provider of medical imaging software and services to hospitals, imaging centres, and healthcare groups. The Company has a high-margin, subscription-based model and a strong pipeline of contract wins with major health institutions globally.
Netwealth Group Ltd (ASX: NWL) was the third pick, a financial technology business providing investment platforms and expanded access to investment options for clients. Netwealth has been a consistent grower of funds under management and continues to take market share from traditional wealth management platforms.
TechnologyOne Ltd (ASX: TNE) rounded out the mid-section of AFIC’s growth picks. TechnologyOne is a global provider of enterprise resource planning software and is increasingly recognised as one of the most consistent software compounders listed on the ASX. It features regularly among ASX share portfolio picks 2026 discussions for its earnings reliability and international expansion.
SEEK Ltd (ASX: SEK), the global jobs and employment marketplace business, was the fifth growth addition. SEEK operates across Australia, Asia, and other international markets, giving it a broad base of recurring revenue from employers and job seekers alike.
The final growth pick was REA Group Ltd (ASX: REA), the owner of realestate.com.au and several other property-related digital platforms. REA Group holds a dominant position in Australian residential property listings and is expanding its financial services and international operations.
Industry Outlook
The Australian listed investment company sector continues to attract attention as a vehicle for investors seeking diversified, professionally managed exposure to the ASX 200. AFIC’s tilt toward technology-oriented growth names in this latest round of ASX share portfolio picks 2026 reflects a broader industry conviction that digital platforms with recurring revenue models and strong competitive moats are well-positioned to compound returns over the coming decade. Demand for best ASX 200 stocks for income remains firm as interest rate expectations evolve and investors seek franking credit benefits unique to the Australian tax environment.
Figure 4: Investor analysing stock market charts and portfolio data [Courtesy: Freepik]
Future Direction and What It Means for Investors
AFIC’s latest portfolio activity provides a clear signal about where one of Australia’s most experienced investment teams sees value among top ASX shares to invest in 2026. The income picks favour businesses with predictable cash flows and strong dividend histories, while the growth picks concentrate on technology platforms with recurring revenue and expanding addressable markets.
For investors building or reviewing their own ASX share portfolio picks 2026, AFIC’s moves offer a practical reference point. The Company’s track record of long-term outperformance gives weight to each of its selections, and the rotation out of major bank stocks in favour of technology and retail names signals a meaningful shift in how the team is positioning for the year ahead.
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Frequently Asked Questions
Q1. What are AFIC’s best ASX 200 stocks for income in 2026?
Ans. AFIC identified JB Hi-Fi (ASX: JBH), Coles Group (ASX: COL), Computershare (ASX: CPU), and Telstra Group (ASX: TLS) as its four income-focused additions, each offering consistent dividend profiles and established earnings bases.
Q2. Which top ASX shares to invest in 2026 did AFIC pick for growth?
Ans. AFIC’s six growth picks were CAR Group (ASX: CAR), Pro Medicus (ASX: PME), Netwealth Group (ASX: NWL), TechnologyOne (ASX: TNE), SEEK (ASX: SEK), and REA Group (ASX: REA), all broadly described as technology or digital platform businesses.
Q3. What stocks did AFIC sell as part of its ASX share portfolio picks 2026 update?
Ans. AFIC trimmed or exited positions in NAB, CBA, Westpac, ALS, Sonic Healthcare, and Telix Pharmaceuticals, signalling a deliberate rotation away from several major financial and healthcare names.
Q4. Why is AFIC’s portfolio a useful guide for ASX 200 investors?
Ans. AFIC is the largest and one of the oldest listed investment companies in Australia, with a long track record of selecting ASX 200 shares for income and growth. Its portfolio disclosures offer a rare, transparent view of how an experienced, long-term manager is positioning capital.
Q5. What is AFIC and how does it select ASX 200 shares?
Ans. Australian Foundation Investment Co Ltd (ASX: AFI) is a listed investment company that selects a mix of dividend-paying and growth-oriented ASX 200 businesses with the aim of delivering fully-franked income and long-term capital appreciation for its shareholders.
Disclaimer This article is intended for informational purposes only and does not constitute financial or investment advice. All content is based on publicly available information sourced from The Motley Fool Australia, published 14 Mar 2026. Investing in securities involves risk, including the possible loss of principal. Readers should conduct their own research and seek independent financial advice before making any investment decisions. Colitco does not hold any position in the companies mentioned.
Sources
The Motley Fool Australia, 14 Mar 2026
https://www.fool.com.au/2026/03/14/a-leading-investor-just-bought-these-asx-200-shares-for-income-and-growth/
TradingView — Australian Foundation Investment Company Logo
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Freepik — Business Investment Chart Illustration
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Reuters — Australian Securities Exchange Market Display
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Freepik — Forex Trade Graph Chart Concept
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