Where I would invest $25,000 in the ASX

Unless wage growth and inflation picks up early in 2018, it looks very likely that rates will remain on hold until at least the end of the next year.

In light of this, if I had $25,000 sitting in a bank account I would consider putting it to work in the share market.

After all, the local share market has provided an average annual return of 9.1% over the last 30 years according to Fidelity.

If it did the same over the next 30 years then that one-off $25,000 investment would grow to be worth approximately $340,000.

With that in mind, here are a couple of shares I would consider investing this money into:

Aristocrat Leisure Limited (ASX: ALL)

This gaming technology company would be a great buy and hold investment in my opinion. Although it is perhaps best-known for its pokie machines, its digital business is the company’s real growth engine and the main attraction for me. Thanks to a number of highly accretive acquisitions, I think Aristocrat is well-positioned to outperform the market over the next few years. Further to this, the recent tax reform in the United States will be a big boost as it generates a significant amount of revenue in the U.S. market. Overall I think it is vastly superior to industry rival Ainsworth Game Technology Limited (ASX: AGI).

Ramsay Health Care Limited (ASX: RHC)

Another great buy and hold investment option could be private hospital operator Ramsay. Due to ageing populations and increased chronic disease, I expect Ramsay to deliver above-average organic earnings growth for at least the next decade. Further, thanks to its strong balance sheet the company has the option to accelerate this growth through expansions and acquisitions. While the same tailwinds should also be a boost for rival Healthscope Ltd (ASX: HSO), I think the quality of its hospitals, its global footprint, and experienced management team make Ramsay the better pick.

Finally, here are three more long-term buy and hold investment options that I expect to outperform over the next few years.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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.

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.