With interest rates at record lows and potentially heading even lower in the coming months, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market instead.
After all, the potential returns on offer are far greater than the paltry interest rates being offered by banks these days.
Here are three top shares I would consider buying:
Altium Limited (ASX: ALU)
I think Altium would be a great option for that $10,000. This is because I believe the printed circuit board design software company is well-positioned to deliver strong earnings growth over the next decade thanks to its industry-leading software platform, its exposure to the fast-growing Internet of Things market, and its growing Octopart search engine business. And although its shares trade at a premium to the market average, I believe its growth profile justifies this.
Nanosonics Ltd (ASX: NAN)
Nanosonics is a leading infection control specialist which I think could be a great option for the $10,000. This is because of its industry-leading trophon EPR disinfection system for ultrasound probes, which I expect to underpin strong earnings growth over the next decade. This system has a massive global market opportunity and looks well-placed to capture a big slice of it thanks to its quality and favourable guideline changes. Another bonus is the upcoming launch of new products which look set to give its growth a further boost.
REA Group Limited (ASX: REA)
A final option for that $10,000 investment is REA Group. With the housing market showing signs that it is on the verge of rebounding, I believe the property listings company could soon experience a sharp rise in listings volumes. Combined with price increases and its new revenue streams, I’m confident the company is positioned to deliver strong earnings growth for some time to come.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Altium and Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited and REA Group Limited. 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.