How I’d invest $40,000 in growth stocks today

The market always presents opportunities for an investor to take advantage of. Whether you have $40,000 or $4,000 you can invest in a number of great options.

Here’s how I would invest $40,000 today:

Altium Limited (ASX: ALU)

I’d invest $10,000 in Altium because the growth of the complexity of electronics is expected to soar. The electronic PCB software provider is predicting revenue to double over the next few years.

Altium is trading at 23x FY18’s estimated earnings with an unfranked dividend yield of 2.56%.

Challenger Ltd (ASX: CGF)

I’d invest $10,000 in Challenger shares because the annuity market leader is benefiting from the number of people entering retirement. There are many more years of baby boomers entering retirement which could boost Challenger significantly for at least five years.

Challenger is currently trading at 17x FY18’s estimated earnings with a grossed-up dividend yield of 3.8%.

Freelancer Ltd (ASX: FLN)

I’d invest $5,000 in Freelancer because it’s experiencing tremendous growth thanks to its global reach of users. It’s growing the number of freelancers and jobs at a fantastic rate each year and now that it’s reaching profitability, most of the revenue will fall to the bottom line.

Freelancer is currently trading 50% lower than its 52-week high.

NIB Holdings Limited (ASX: NHF)

I’d invest $5,000 in NIB because it has impressively grown its total number of policyholders each year and the government needs the private health insurance sector to succeed. The recent dip in the share price presents a good, long-term opportunity in my opinion.

NIB is trading at 20x FY18’s estimated earnings with a grossed-up dividend yield of 4.39%.

Ramsay Health Care Limited (ASX: RHC)

I’d invest $10,000 into Ramsay Health Care because it could also be a major beneficiary of the ageing population. It has been one of the best stocks to own and could continue to be, thanks to its global reach and expansion plans.

Ramsay is trading at 24x FY18’s estimated earnings with a grossed-up dividend yield of 2.55%.

Foolish takeaway

There’s my wishful thinking if I had $40,000 to invest with. I’m a shareholder in three of the five because I think they have great long-term prospects and I am always on the look out to add more when the price is right and funds are available.

For more great growth stocks that could be worth a $40,000 investment, you should read our latest report on the best growth options.

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Motley Fool contributor Tristan Harrison owns shares of Altium, Challenger Limited, and Ramsay Health Care Limited. The Motley Fool Australia owns shares of Altium and Challenger Limited. 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.

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