Where I would invest $20,000 in the share market

If I had $20,000 sitting in a supposedly high interest savings account I would look to put these funds to work in the share market.

After all, interest rates are at record lows and the market has averaged an annual return of 7.1% over the last 10 years according to Canstar.

If it were to achieve the same level of return over the next 10 years, that $20,000 investment would grow to be worth almost $40,000.

With that in mind, here is where I would consider investing that $20,000:

A2 Milk Company Ltd (ASX: A2M)

While this fast-growing infant formula company is by no means cheap, its shares have recently fallen approximately 14% from their high to a far more attractive level. Due to the insatiable demand for infant formula in China and a2 Milk’s strong brand image in the country, I believe it is more than capable of delivering above-average earnings growth in the long-term to justify the premium its shares trade at today.

Appen Ltd (ASX: APX)

This exciting machine learning and artificial intelligence dataset provider counts some of the biggest tech companies in the world as customers. Such is the demand from the social media and search categories, Appen achieved an impressive 62% year-on-year lift in EBITDA in FY 2017. Despite this strong level of growth, management remains confident that FY 2018 will be even better due to the growing demand for its services. It has provided full-year EBITDA growth guidance in the range of 77.9% and 96%.

Macquarie Telecom Group Ltd. (ASX: MAQ)

This telecommunication and hosting services provider’s shares may be trading close to a multi-year high, but I still think they are great value for a long-term investment. Especially given the strong financial performance and growth potential of its data centre business. In many respects, I see Macquarie Telecom as a cheaper alternative to industry peer and market darling Nextdc Ltd (ASX: NXT).

Looking for even more investment options in the future? These up and coming star stocks are well worth a closer look if you ask me.

3 Revolutionary Tech Companies 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 owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of A2 Milk and Appen Ltd. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!