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Where to invest $20,000 in the ASX 200 in 2019

Although 2018 has been a disappointing year for financial markets, I’m optimistic that 2019 will be much more positive.

In light of this and the low interest rates on offer from savings accounts, if I had $20,000 sitting in a bank account I would consider putting it to work in the share market in 2019.

Here are three top shares I would buy:

Bellamy’s Australia Ltd (ASX: BAL)

This organic infant formula company has had a very disappointing year due to the unexpected delays in it attaining the SAMR accreditation required to sell its product in China. This delay and the sales disruption caused by the launch of a new product formulation means that Australian label sales are expected to be at the low end of its 0% to 10% guidance range in FY 2019. I’m optimistic that its SAMR accreditation isn’t too far away and expect Bellamy’s sales to grow significantly when it is granted. I think this could make it worth considering Bellamy’s after its sharp share price decline.

CSL Limited (ASX: CSL)

I think that this biotherapeutics company would be a great share to own in 2019. Due partly to the expansion of its plasma collection network, the strength of its immunoglobulins sales, and its growing influenza business, management expects the company to achieve a net profit after tax in the range of US$1,880 million to US$1,950 million in FY 2019. This will be an increase of 10% to 14% on FY 2018’s underlying result. Pleasingly, given its pipeline of products targeting lucrative market opportunities and it high level of investment in R&D, I believe this strong form can continue for many years to come.

Rural Funds Group (ASX: RFF)

Investors that are interested in dividend shares might want to consider Rural Funds. I’m a big fan of this agriculture-focused real estate property trust due to its diverse portfolio of assets which are spread across different regions and industries. In addition to this, due to the fact that its long-term tenancy agreements have rental indexation built into them, I believe it is well positioned to continue increasing its dividend at a solid rate over the next few years. Its units currently offer a forward 4.7% yield.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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