With the cash rate now at a record low of 1% and likely to go even lower over the coming months, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
This is because I feel confident the returns you'll generate on the share market will be vastly superior to savings accounts and term deposits.
With that in mind, here is where I would invest that $10,000:
Altium Limited (ASX: ALU)
One of my favourite long-term investments on the local market is this award-winning printed circuit board (PCB) design software provider. Thanks to its exposure to the fast-growing Internet of Things market, Altium has been growing at a very impressive rate. For example, during the first half of FY 2019 Altium posted half year revenue of US$78 million and profit after tax of $23.4 million. This represented revenue growth of 26% and net profit after tax growth of 58% on the prior corresponding period. In light of this strong growth and its growing market opportunity, management has set itself an "aspirational" revenue target of US$500 million by 2025.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solution is a fast-growing provider of software and services to the wealth management and funds administration industries. Its shares have come under pressure recently following its failed takeover approach for GBST Holdings Limited (ASX: GBT). This means its shares are now trading 25% lower than their 52-week high and at a level which I think is very attractive given the quality of the company and the significant market opportunity that its Sonata wealth management platform has.
ResMed Inc. (ASX: RMD)
ResMed is a sleep treatment products developer which could also be a great option for that $10,000. Its shares may have just reached an all-time high, but I don't believe it is too late to invest with a long-term view. Especially given its leading position in a market that is expected to grow materially over the next decade. Management estimates that there are 1 billion people impacted by sleep apnoea worldwide, but the vast majority of these people are currently undiagnosed and could be at risk of life-threatening conditions.
