MENU

Got a spare $5,000? I would invest it in these 3 ASX shares

Rather than leave a spare $5,000 sitting in a bank account, I would suggest investors put their money to work. After all, as small an investment as it might seem, on a long enough time horizon that investment can grow into something significant.

According to Fidelity the Australian share market provided an average annual return of 9.1% in the 30-year period between 1986 and 2016. That means a $5,000 investment in 1986 would have grown to be worth a massive $68,000 today.

With that in mind, here’s where I would invest $5,000 today:

a2 Milk Company Ltd (Australia) (ASX: A2M)

I believe this fast-growing dairy company has an extremely bright future. Not only does the company continue to make market share gains in the massive Chinese market, but its performance in the United Kingdom and United States has improved greatly. If a2 Milk can replicate its Australian success in these markets then the company could grow significantly in the future.

CSL Limited (ASX: CSL)

I believe the CSL share price has room for significant growth over the next decade. As well as its core business, which continues to fire on all cylinders, I am very bullish on its Seqirus business. Seqirus was formed when CSL acquired the Novartis influenza vaccines business and integrated it with its bioCSL business. It may be early days for Seqirus, but I’ve been pleased with its progress so far. In its recent half-year results the segment delivered a 14% increase in revenue and made a positive contribution to the company earnings before interest, tax, depreciation, and amortisation.

Ramsay Health Care Limited (ASX: RHC)

I think this leading global private hospital operator is in a strong position to profit from the increasing demand for healthcare services. Demand continues to strengthen thanks to ageing populations, longer life expectancy, increased chronic disease burden, and improvements in treatments and diagnostic methods. Because of these tailwinds I believe Ramsay is one of the best buy and hold investment options on the ASX today.

Finally, investors might want to consider teaming up an investment with one of these fast-growing shares. I'm tipping each for big things this year, so grab them whilst you can would be my advice.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often full franked..

But knowing which blue chips to buy, and when, can often be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.