Where to invest $2,000 in ASX shares for strong returns in 2020

Here's why I think Afterpay Ltd (ASX:APT) and these ASX shares could be great places to invest $2,000 into in 2020…

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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 $2,000 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 $2,000 per year in the share market and earned the market return, your investments would be worth almost ~$328,000 today.

I believe this demonstrates why investing even a modest 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 $2,000 investment in 2020.

Afterpay Ltd (ASX: APT)

I think this payments giant would be a great place to invest $2,000 into in 2020. Afterpay has been an extremely strong performer over the last couple of years thanks to its very successful international expansion and the growing popularity of buy now pay later as a payment method. This is especially the case with younger demographics that are turning away from traditional credit products in their droves. Thanks to a very strong start to FY 2020, I'm confident that it will deliver more bumper growth this year. This could be given an additional boost if Afterpay launches into continental Europe this year.

Audinate Group Ltd (ASX: AD8)

Another good option for that $2,000 could be Audinate. It is a provider of hardware and software solutions to the audio/visual (AV) market. Its key product is the flagship and award-winning Dante media networking solution. This product eliminates the need for traditional analogue connections by transmitting synchronised audio signals across large distances via IP networks. Demand for the product has been growing very strongly, leading to stellar top line growth. In FY 2019, for example, Audinate posted a 34% increase in revenue to US$20.3 million. And given the quality of its technology and its sizeable addressable market, I expect similarly strong growth in FY 2020.

Nearmap Ltd (ASX: NEA)

Another share to consider investing $2,000 into is Nearmap. I think the leading aerial imagery technology and location data company has the potential to grow materially over the next decade and could provide strong returns for investors. It has been experiencing very strong demand for its offering, leading to management providing annualised contract value (ACV) guidance of $116 million to $120 million in FY 2020. This will be growth of 28.6% to 33% on FY 2019's ACV and still only fraction of an addressable market estimated to be worth US$10.1 billion in 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 AFTERPAY T FPO and AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended AUDINATEGL FPO. 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.

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