Rather than leaving money to gather dust in a savings account, I think now would be a good time to put your funds to work in the share market.
After all, you only need to look at the returns that have been generated over the last 10 years to see how lucrative a long term investment in the share market can be.
With that in mind, here are three top shares that I would consider investing $20,000 into in August:
Appen Ltd (ASX: APX)
Due to its leadership position in the development of high-quality, human-annotated training data for machine learning and artificial intelligence, I think Appen would be a great long term investment option. This is because these two markets are expected grow materially over the next decade as businesses across the globe invest heavily in the space in order to take advantage of technological advances and make their operations more efficient. I expect this to drive increasing demand for its services and support strong long-term earnings growth.
REA Group Limited (ASX: REA)
Although this property listings company has had a slower than expected start to FY 2020 in respect to listings, I remain confident that there will be a material uptick in volumes over the course of the financial year thanks to the improving outlook for the housing market. In addition to this, its earnings growth should be given an additional boost from price increases that were introduced at the start of July. Overall, I believe everything is in place for REA Group to deliver above-average growth again over the next decade.
ResMed Inc. (ASX: RMD)
I think this sleep treatment-focused medical device company would be a good place to invest the $20,000. I think ResMed is well-placed to deliver strong long-term earnings growth thanks to its industry-leading products and its growing market opportunity. A recent presentation reveals that there are an estimated 1 billion people impacted by sleep apnoea worldwide, but the vast majority of these are undiagnosed. Given the increasing awareness of the condition, I expect ResMed to benefit greatly over the next 10 years as more and more of these people are diagnosed.
And here are more growth shares that could be great options for a $20,000 investment.
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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 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.