If your New Year's resolution is to invest in the share market, then I think the three ASX shares listed below could be great places to start.
Here's why I would invest $10,000 into them in January:
a2 Milk Company Ltd (ASX: A2M)
I think that this New Zealand-based fresh milk and infant formula company would be a great option for a $10,000 investment. A2 Milk has been growing its earnings at an explosive rate over the last few years. I continue to believe this strong form can continue for many years to come thanks to the growing demand for its infant formula products in the massive China market. Another positive is the expanding footprint of its fresh milk business in the U.S. market. Combined, the future looks very bright for this growing company.
REA Group Limited (ASX: REA)
I think this property listings company could be a great place to invest $10,000 with a long term view. Especially after during the December quarter Australian house prices posted their strongest increase in recent memory. According to CoreLogic house price data, the Corelogic National Index rose 4% during the quarter. A key highlight was a 6.2% jump in Sydney house prices during the period. I believe this bodes well for listings volumes for REA Group in 2020. Combined with price increases and new revenue streams, I believe the company is well-placed for growth over the coming years.
Xero Limited (ASX: XRO)
A final option to buy with your $10,000 is Xero. It is a leading provider of online accounting software which has been growing very strongly in recent years. Pleasingly, this strong form has continued in FY 2020, leading to Xero reporting strong sales and subscriber growth in the first half. The good news is that it is still only scratching at the surface of its massive global market opportunity. And given the quality and stickiness of its product, I'm confident that it will continue to grow its market share at a strong rate over the next decade.
