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Where I would invest $25,000 in the share market

Earlier this week the Australian Bureau of Statistics released its consumer price index (CPI) report for the September quarter which revealed that inflation has fallen short of expectations once again.

According to the report, CPI inflation is now running at 1.9%, which is under the Reserve Bank of Australia’s targeted range of between 2% and 3%.

In light of this, it seems inevitable that the central bank will have to keep rates on hold at the record low of 1.5% for some time to come.

So, if I had $25,000 in a savings account gathering only paltry interest, I would consider putting it to work in the share market instead.

Three shares that I would consider investing these funds into are as follows:

Appen Ltd (ASX: APX)

If you’re a fan of growth shares then it could be worth considering this global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. Last month the Appen share price fell heavily during the market volatility along with many of its fellow tech shares. This decline has left the company’s shares trading at approximately 27x estimated FY 2019 earnings, which I think is great value given its strong long term growth potential.

Dicker Data Ltd (ASX: DDR)

Investors interested in generating income might want to consider this wholesale distributor of computer software and hardware. I like Dicker Data due to its high levels of insider ownership, robust business model, solid growth prospects, and its generous yield. This year the Dicker Data board intends to pay an 18 cents per share fully franked dividend. This equates to a yield of 6.3%, which would generate approximately $1,580 of income from a $25,000 investment.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another growth share that could be worth looking at is Domino’s Pizza Enterprises. If the pizza chain operator can successfully deliver on its bold long-term expansion plans then I believe its shares will be significantly higher in a few years. The plans include the near doubling of its store network over the next seven years in existing territories and the widening of its margins. In addition to this, I see opportunities for the company to bolster its growth by expanding into other markets.

And here is a buy-rated growth share that got a whole lot cheaper in October.

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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 Dicker Data Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. 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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