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.

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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.

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