MENU

Where I would invest $5,000 in the ASX today

While a $5,000 investment might not sound like much in the grand scheme of things, depending on your investment time horizon an annual investment of $5,000 could one day grow to be very significant.

According to research by Fidelity, Australian shares have provided investors with an average return of 9.1% per annum over the last 30 years

Should the market provide the same average annual return in the future, a once a year $5,000 investment in the local share market for 30 years would grow to be worth over $750,000.

Whilst investors could consider using an index fund, they could potentially find superior returns by investing the $5,000 in some high quality blue chip shares with strong growth potential.

Here are four shares I would consider investing this money into:

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

Demand for a2 Milk’s infant formula from Chinese consumers continues to grow at an incredible rate. This demand led the company to upgrade its full-year guidance for the second time in two months last week. Whilst it shares are by no means cheap now, I believe the premium is justified based on its current outlook.

CSL Limited (ASX: CSL)

I believe the biotherapeutics giant could be a great long-term buy and hold investment. Thanks to its industry leading immunoglobulins business and fledgling influenza vaccine business, I believe CSL is capable of delivering above-average earnings growth for at least the next decade.

Ramsay Health Care Limited (ASX: RHC)

This private hospital operator could be my favourite buy and hold investment option on the local share market. Thanks to its global footprint, I believe Ramsay is positioned perfectly to profit from ageing populations and increased chronic disease burden across the world.

Webjet Limited (ASX: WEB)

In the first-half of FY 2017 this leading online travel agent reported a whopping 96% jump in net profit after tax thanks to the strong performance of all of its businesses. Not only did all its key segments post an increase in bookings growth, they also increased their respective market share. I expect more of the same moving forward.

Finally, if you're looking for even more ideas then look no further than these three gems too. Each has been growing like gangbusters and I expect more of the same in the future.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can 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%.

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.