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Where I would invest $10,000 in the ASX

The U.S. Federal Reserve may be tipped to raise rates up to four times in 2018, but it seems quite unlikely that there will be a single rate rise in Australia this year.

This means that the paltry interest rates on offer from savings accounts are likely to be here for some time to come.

In light of this, if I had $10,000 sitting in a savings account I would consider putting it to work in the share market.

After all, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has provided a return of 9.1% since this time last year including dividends and is well-positioned to do likewise over the next 12 months in my opinion.

With that in mind, here are three shares I would consider putting that $10,000 into:

A2 Milk Company Ltd (ASX: A2M)

This fast-growing dairy company was arguably the highlight of earnings season with its incredible half-year result. Although its shares have gone gangbusters since the release, I don’t think it is too late to snap them up. In fact, a note out of Citi last week revealed that its analysts had retained their buy rating and increased the price target on its shares to $14.00.

BHP Billiton Limited (ASX: BHP)

At the $30.00 level I think this mining giant’s shares are a screaming buy. Thanks to the positive outlook for the global economy and the strong demand for commodities that this should lead to, I expect BHP to benefit from favourable commodity prices for at least the next couple of years. This could put it in a position to deliver bumper profits and reward shareholders with a sizeable dividend.

Greencross Limited (ASX: GXL)

I think that this integrated pet care company would be a great option for investors, especially given the early success of its in-store veterinary clinic roll out. During the first-half of FY 2018, the company’s retail stores that already have in-store clinics inside them delivered an impressive 7.5% increase in like-for-like sales, compared to a 4% increase across all its Australian retail stores. I expect more of the same in the second-half.

Got another $10,000 to invest? Then these three growth shares could be just as good.

Top 3 ASX Blue Chips To Buy In 2018

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross Limited. 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 Scott Phillips.

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