The cash rate is expected to be taken lower by the Reserve Bank in the coming months, so if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
After all, with an average return of around 9% per annum over the last three decades, the potential returns on offer are significantly greater than anything you'll find in a savings account.
With that in mind, here are three top shares that I would consider investing that $10,000 into:
Altium Limited (ASX: ALU)
On Monday this design software company's shares dropped a sizeable 8.5% during the market selloff. I believe this has created a buying opportunity for investors that are willing to make a long-term investment. Especially given its strong long term growth prospects due to its exposure to an Internet of Things market which is growing at an explosive rate. For example, management recently revealed an aspirational revenue target of US$500 million by 2025. This is a 150% increase on the company's revenue target for FY 2020. If it delivers on this then I expect its share price will climb significantly higher over the next six years.
CSL Limited (ASX: CSL)
With this global biotherapeutics company's shares down 16% from their all-time high, I think now could be an opportune time to make a buy and hold investment. This is because thanks to its growing plasma collection network, strong core business, the company's material investment in research and development, and its fast-growing Seqirus business, I believe CSL is well-positioned to grow its earnings at an above-average rate for the foreseeable future.
Xero Limited (ASX: XRO)
Xero is a cloud-based business and accounting software provider which I think would be a great destination for that $10,000 investment. Due to the shift to online accounting, the quality of its product, and the company's international expansion, Xero has been growing at a very strong rate over the last few years. Pleasingly, this has remained the case in FY 2019, with Xero posting a 40% increase in annualised monthly recurring revenue to NZ$589.1 million during the first half. Given the stickiness of its product and its global growth opportunities, I believe the company is capable of continuing this solid growth for many years to come.
