If you have $2,500 sitting in a savings account, I would suggest you consider investing it into the share market.
After all, the potential returns on offer are vastly superior to the interest rates provided with savings accounts right now.
But where should you invest these funds? Here are three shares that I would invest $2,500 into:
Afterpay Ltd (ASX: APT)
I think this payments giant would be a great place to invest $2,500. Although its shares have more than doubled in value over the last 12 months, I still believe they can go even higher in the near term. Especially after its very impressive start to FY 2020. Thanks to strong customer and underlying sales growth in the ANZ, UK, and U.S. markets, Afterpay smashed its records and the market’s expectations during the first five months of the current financial year. Given the growing popularity of its platform and buy now pay later as a payment method, I expect more of the same in the second half and beyond.
Altium Limited (ASX: ALU)
Another top option for that $2,500 investment could be Altium. It is a printed circuit board (PCB) design software provider. I continue to believe it could be a great long term option due to the Internet of Things (IoT) boom which is driving increasingly strong demand for its Altium Designer software. This is because almost all IoT devices contain PCBs inside them. Another positive is its other businesses, such as Octopart, that are growing quickly and supporting its growth.
ResMed Inc. (ASX: RMD)
A final option to consider investing $2,500 into is ResMed. The sleep treatment-focused medical device company has been growing at a very strong rate over the last few years and appears well-positioned to continue this trend in the future. This is thanks to its industry-leading sleep products, its fast-growing software solutions business, and the proliferation of sleep apnoea. Management estimates that there are ~1 billion people impacted by sleep apnoea worldwide, but the vast majority have not yet sought treatment.
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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.