Over the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has put on a gain of around 9% excluding dividends. If you add in the dividends this return increases to a massive 13.5%.
While there's no guarantee that the market will perform as well over the next 12 months, I'm optimistic that it will vastly outperform other asset classes such as savings accounts and term deposits.
In light of this, if I had spare funds sitting in a bank account I would put them to work in the share market.
Three shares I would consider are as follows:
Bapcor Ltd (ASX: BAP)
Bapcor is one of Australia's largest suppliers of car parts and accessories. Thanks to a winning combination of organic and inorganic growth the company has been growing very strongly over the last few years and I believe there's still plenty more left in the tank. Especially given its plan to expand into the massive Asia market. I believe this has been a good move by management and should support its future growth when its ANZ operations mature. This year the company is expected to deliver 30% pro forma net profit after tax growth from continuing operations.
Cochlear Limited (ASX: COH)
Cochlear is a hearing solutions company which I think would be a great buy and hold investment. While its shares may be fully valued now after a stellar share price gain over the last 12 months, I believe there's a good chance that in five years its shares will be notably higher than where they stand today. Especially if ageing populations across the globe lead to increased demand for hearing products. Cochlear's industry-leading products are sold in over 100 countries worldwide, putting it in a great position to benefit from this tailwind.
Corporate Travel Management Ltd (ASX: CTD)
Another share that could be a great buy and hold option is this corporate travel manager. The company has been a strong performer over the last couple of years thanks to positive trading conditions and a number of astute acquisitions. One recent acquisition is Hong Kong-based Lotus Travel Group, which has been operating for over 60 years and is one of the largest travel companies in Greater China. I think this deal and the massive opportunity the company has in the U.S. market will lead to above-average earnings growth for a number of years to come.
