Giving your investments the time to grow to their full potential is essential if you're aiming to beat the market.
Here are three long-term investment ideas that have a great chance of beating the market convincingly:
Challenger Ltd (ASX: CGF)
Challenger is the market leader of annuities in Australia. Its main aim is to provide guaranteed income to retirees who are seeking to turn their capital into a safe form of income.
Financial advisers in their droves are suggesting their clients take up an annuity. Annuity sales are expected to strongly increase over the next two decades with the number of people over 65 predicted to grow by 75%.
Government legislation changes and more distribution channels could see Challenger grow strongly to 2020.
Challenger is currently trading at 17x FY18's estimated earnings with a grossed-up dividend yield of 3.76%.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is the largest private hospital operator in Australia. It has an impressive network of hospitals in Australia, the UK and France.
Ramsay has been one of the best businesses to own over the last two decades because of its growth and defensive earnings.
Organic growth, development and acquisitions could see Ramsay continue to grow earnings per share at a double-digit rate for many years to come.
Ramsay is currently trading at 24x FY18's estimated earnings with a grossed-up dividend yield of 2.49%.
Japara Healthcare Ltd (ASX: JHC)
Japara is one of the largest aged care operators in Australia. The ageing demographics of Australia mean that increasing numbers of elderly will need special care in aged care facilities over the next few decades.
The business is expected to rapidly grow its overall number of beds over the next five years as it finishes all of its greenfield and brownfield construction projects.
Japara is currently trading at 18x FY16's earnings with a grossed-up dividend yield of 8.13%.
Foolish takeaway
The best way to ensure long-term returns is to invest in quality companies with long-term growth plans. All three of the above companies fit the bill in my opinion. Of the three I think Challenger will generate the strongest returns for shareholders.
