If you only have a modest amount of money to invest in the share market, don't worry. This is because even an investment of $1,000 has the potential to grow materially over the long-term.
Over the last 30 years the Australian share market has provided investors with an average total return of ~9.5% per annum. This means that if you'd invested $1,000 per year in the share market and earned the market return, your investments would be worth almost $165,000 today.
I believe this demonstrates why investing even a small amount each year can still be very rewarding. With that in mind, here are three shares which I think would be great options for a $1,000 investment in 2020.
Afterpay Ltd (ASX: APT)
Whilst there are regulatory risks to consider, I feel confident the rewards on offer make up for this and make Afterpay a compelling investment option. It has continued to smash expectations in 2019 with incredible underlying sales and customer growth. I feel confident this will continue in 2020 thanks to the increasing popularity of its platform with consumers and retailers globally. A potential launch into continental Europe could also be a major boost to its growth.
Bigtincan Holdings Ltd (ASX: BTH)
At the small side of the market there is Bigtincan. It is a provider of enterprise mobility software to a growing number of blue chip companies. This includes companies such as Australia and New Zealand Banking Group (ASX: ANZ), Nike, and Sephora. Its software allows sales and service organisations to increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.
ResMed Inc. (ASX: RMD)
A final option for that $1,000 investment is ResMed. I think its shares could provide investors with market-beating returns over the next decade. This is thanks to its industry-leading sleep treatment products and the proliferation of sleep apnoea. Management estimates that there are ~1 billion people impacted by sleep apnoea worldwide.
