With the Reserve Bank of Australia expected to take rates even lower in the coming months, if I had $5,000 in a savings account gaining only a modicum of interest, I would consider putting it to work in the share market instead.
Three top ASX 200 shares that I think would be great options for these funds are listed below. Here's why I like them:
Cochlear Limited (ASX: COH)
Cochlear is one of the world's leading hearing solutions companies, manufacturing and distributing industry-leading cochlear implantable devices for the hearing impaired globally. Thanks to the quality of its products, high levels of investment in research and development, and increasing demand, Cochlear has delivered consistently strong earnings growth over the last decade. The good news for the company and its shareholders is that the world is getting older and the number of people aged 65 is expected to increase significantly over the next three decades. I expect this to lead to increasing demand and strong sales growth for many years to come.
REA Group Limited (ASX: REA)
With recent data revealing that the Australian housing market could be close to bottoming, many believe a rebound in house prices could be coming in 2020. This would be a big lift for REA Group and its key realestate.com.au property listings website, as it could lead to a notable increase in property listings and ultimately an acceleration in the company's profit growth. In light of this, I think now would be a good time to consider picking up shares with a long-term view.
Xero Limited (ASX: XRO)
Another good option for that $5,000 investment could be this cloud-based business and accounting software provider. Thanks to a combination of growth in subscribers and average revenue per user, Xero has been growing its top line at an incredible rate in recent years. Given its massive global market opportunity, high quality product, and strong pricing power, I believe it is well-placed to continue this trend for a long time to come. This could arguably make it one of the best buy and hold options on the local market.
