Where to invest $10,000 into ASX shares this week

Appen Ltd (ASX:APX) shares are one of three that I would invest $10,000 into this week…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With interest rates at ultra-low levels and unlikely to improve any time soon, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.

After all, as of December 31, research by Fidelity shows that the Australian market has provided an average return of 9.1% per annum over the last three decades.

Three shares that I believe could provide returns of this level or better over the long term are listed below. Here's why I would invest $10,000 into them:

Appen Ltd (ASX: APX)

According to a recent presentation, Appen's management team expects the artificial intelligence market to grow to be worth up to US$191 billion by 2025. Approximately 10% of this is expected to relate to the data labelling which Appen is involved in. Due to its industry leading position and recent acquisitions, I believe the company is well-positioned to capture a growing slice of this massive market in the coming years. Overall, I expect this to underpin strong earnings growth for the foreseeable future.

Macquarie Telecom Group Ltd (ASX: MAQ)

I think that Macquarie Telecom could be a great long term investment due to its exposure to the cloud computing boom. The company may still provide traditional telco services to corporate and government customers, but the main driver of its future growth is expected to be its Hosting (data centre) segment. This segment has been growing at a strong rate over the last few years and has continued doing so in FY 2019. In the first half the segment delivered a 14% increase in segment EBITDA to $15.3 million. It looks set to build on this in the second half when the company starts billing its Fortune 100 customer.

REA Group Limited (ASX: REA)

Although the housing market downturn has led to difficult trading conditions for this property listings company, it has still managed to deliver strong profit growth so far in FY 2019. I believe this is a testament to the quality of its business and that when trading conditions improve, the realestate.com.au operator will be well-positioned to accelerate its growth and generate solid returns for shareholders.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended REA Group 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.

More on Growth Shares

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

Here are the top five ASX 200 shares in Macquarie's model growth portfolio

These ASX 200 shares are highly rated by analysts at Macquarie.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Growth Shares

3 ASX shares to buy in 2024 and hold for the next 10 years

Analysts think these top shares are in the buy zone right now.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Growth Shares

3 of the best ASX growth shares to buy now

Analysts see plenty of upside for these buy-rated shares.

Read more »

A man and woman in an office look at a laptop and discuss investing, budget strategies or other financial concepts
Growth Shares

Here's why analysts love these buy-rated ASX 200 growth shares

There's a reason analysts are feeling bullish about these companies.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Growth Shares

Big returns could be coming for high-flying Lovisa shares

Morgans doesn't believe it is too late to snap up this hot stock.

Read more »

Smiling young parents with their daughter dream of success.
Growth Shares

Why these ASX 200 growth shares could be top buys now

Analysts are feeling bullish about these growth stocks. Let’s see what they’re saying.

Read more »

Concept image of a man in a suit with his chest on fire.
Growth Shares

Ignore the noise and buy this hot ASX growth stock

A recent pullback may have created a buying opportunity according to Bell Potter.

Read more »