With interest rates at record lows and likely to go even lower over the coming months, if I had $20,000 sitting in a savings account, I would consider putting it to work in the share market.
After all, if rates go much lower, they will fall beneath the inflation rate, which means that you could soon be making a negative real return on your savings.
With that in mind, here are three quality shares that I would consider investing $20,000 into this month:
Altium Limited (ASX: ALU)
I think that this award-winning printed circuit board (PCB) design software provider could be a great option for that $20,000 investment. This is because I believe Altium has a long runway for growth thanks to its exposure to the rapidly growing Internet of Things (IoT) market. As PCBs are found in almost all IoT devices, I expect demand for its software to continue increasing at a strong rate for a long time to come.
Collins Foods Ltd (ASX: CKF)
Another good option for these funds could be this leading KFC, Taco Bell, and Sizzler restaurant operator. In FY 2019 Collins Foods was a strong performer, reporting a 16.9% increase in revenue and a 15.7% increase in underlying net profit of $45 million. This strong result was driven by a combination of strong same store sales growth in Australia and the expansion of its network. The good news is that I believe Collins Foods can continue this solid form thanks largely to its massive opportunity in Europe.
ResMed Inc (ASX: RMD)
Another growth share to consider investing these funds into is this medical device company. ResMed has a portfolio of cloud-connected devices which care for people with sleep apnoea, chronic obstructive pulmonary disease, and other chronic diseases. The sleep treatment market is tipped to grow strongly over the next decade, which I believe puts ResMed in a position to continue growing its earnings at an above-average rate for some time to come.
And here are more buy-rated growth shares to consider buying this week. Each has been tipped as potential market beaters.
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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Collins Foods Limited and ResMed Inc. 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.