Why I would invest $5,000 in these top ASX shares

Unfortunately for savers it looks as though interest rates are unlikely to improve until late next year at the earliest.

Because of this, if I had $5,000 sitting in a bank account I would consider investing it in some of Australia’s top shares. After all, the potential returns on offer from the share market are vastly superior to those of savings accounts or term deposits.

The three top shares listed below are the ones I would consider buying this week:

Aristocrat Leisure Limited (ASX: ALL)

While Aristocrat Leisure has a highly profitable core pokie machine business which has been performing exceptionally well this year, the main attraction to the gaming technology company for me is its growing digital business. At the last count there were a massive 8.3 million daily active users of its digital portfolio, up 493% on the prior corresponding period. Each of these users currently contributes an average of 41 U.S. cents per day, which means the segment enjoys sizeable recurring revenues which I find highly attractive. Despite its strong share price rise this year, its shares still trade at a respectable 26x estimated full-year earnings.

ResMed Inc. (ASX: RMD)

ResMed is a sleep treatment specialist which has been kicking goals again this year. In its most recent quarterly update the company revealed a 32% increase in quarterly profit to US$132.5 million. While its growth may moderate over the coming years, I still believe it is capable of above-average earnings growth thanks to its leading position in a growing sleep treatment market. This could make it a great buy and hold option in my opinion.

Xero Limited (ASX: XRO)

Another great buy and hold option could be this leading cloud-based accounting software provider. I have been very impressed with the way Xero has been growing its market share in Australia-New Zealand and the United Kingdom. But considering the quality and stickiness of the product, this doesn’t come as a big surprise. Key to its long-term growth will be the U.S. market. It won’t be easy and success won’t come overnight, but I remain confident that Xero will succeed in that market. If this proves to be the case, it could put Xero in a position to deliver above-average growth over the next decade.

And just like Xero, these four top shares could also be great options for that $5,000. Do you own them?

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended ResMed Inc. 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!