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Where I would invest $10,000 in the ASX this week

Over the last 30 years the Australian share market has provided an average annual return of 9.1% according to Fidelity.

If it were to do this again over the next 30 years and you invested $10,000 into the share market each year, that investment would grow to be worth approximately $1.5 million at the end of the period.

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

Altium Limited (ASX: ALU)

Last month this software-as-a-service company reported half-year revenue growth of 30% to US$63.2 million and EBITDA growth of 51% to US$19 million. This puts the company well on course to achieve its annual revenue target of US$200 million by FY 2020. Especially with the Internet of Things market continuing to grow strongly. As connected devices almost always require a printed circuit board (PCB) inside them, I expect demand for Altium’s award-winning PCB design software will grow strongly.

Nextdc Ltd (ASX: NXT)

I believe that this data centre operator could be one of the best buy and hold options on the local market thanks to the rise of cloud computing and the increasing consumption of data. Demand for its services has been growing strongly, leading to its world-class data centres enjoying heightened utilisation levels. While its shares may be a little on the expensive side, I expect it to deliver long-term earnings growth that more than justifies the premium.

Xero Limited (ASX: XRO)

Another great buy and hold investment option in my opinion would be Xero. The accounting software provider may have a strong share of the Australian, New Zealand, and UK markets, but its share of the U.S. market is still only very slender. I believe the quality of its product should help it gradually win a greater share of this lucrative market and put it in a position to deliver above-average sales growth for some time to come.

Lastly, for your next $10,000 you might want to consider one of these up and coming tech stars.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of Altium and Xero. 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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