Instead of leaving $5,000 in a savings account gaining only a modicum of interest, I would suggest savers consider putting it to work in the share market.
After all, as I have pointed out a few times before, making just a single $5,000 investment in the share market each year over a long enough period of the time can generate significant wealth.
This is because over the last 30 years the Australian share market has averaged a return of 9.1% per annum, according to data provided by Fidelity.
This means that if you had invested $5,000 each year for the last three decades and earned the market return, your investments would have grown to be worth over $750,000 today.
I believe this return demonstrates how rewarding investing with a long term view can be.
With that in mind, here are three quality ASX shares that I would consider investing the first $5,000 into this week:
Altium Limited (ASX: ALU)
Altium is a provider of printed circuit board (PCB) design software globally. Its shares have gone gangbusters over the last decade, providing its lucky shareholders with an average total return of 54.3% per annum. Whilst I wouldn't expect a return anywhere near that level over the next decade, I believe its exposure to the Internet of Things boom means it is well-positioned to be a market beater once again.
CSL Limited (ASX: CSL)
Over the last 10 years this global biotherapeutics company's shares have provided investors with an average total return of 20.2% per annum. And thanks to the quality of its products, its talented management team, and its high level of investment in research and development, I believe CSL is capable of delivering strong profit growth for a long time to come. This could lead to further outsized returns for shareholders.
REA Group Limited (ASX: REA)
This property listings company's shares have beaten the market by some distance over the last decade. Over the period its shares have provided shareholders with an average total return of 34.7% per annum. The good news is that I don't believe it is too late to invest. I think the quality of its business model and its growing international operations have positioned it to be a market beater again over the next decade.
