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Where to invest $1,000 into ASX 200 shares

If you don’t have tens of thousands of dollars to invest in the share market, don’t worry.

Even a modest investment of $1,000 has the potential to grow materially over the long-term through the powers of compound interest.

Over the last few decades the Australian share market has provided investors with an average total return of ~9.5% per annum. That’s even after market shocks like the dot-com crash and the global financial crisis.

If you were to invest $1,000 into the share market every year for 30 years and earn a return of 9.5% per annum, your investments would grow to be worth $165,000 at the end of the period.

And don’t forget, if your wage increases throughout your career, you’ll be able to increase your annual investment and grow your wealth even more so over time.

Overall, I believe this demonstrates why investing just a relatively modest amount each year can still be a very rewarding experience. 

With that in mind, here are three shares which I think would be great options for a $1,000 investment after the Easter break:

CSL Limited (ASX: CSL)

One quality option to consider is this biotherapeutics company. Due to the quality of its CSL Behring and Seqirus businesses, I continue to believe it can be a market beater for some time to come. Especially considering the increasing demand for immunoglobulins, its growing plasma collection network, and its lucrative product development pipeline.

SEEK Limited (ASX: SEK)

Although the near term will be difficult because of the coronavirus pandemic, I still believe this job listings company can be a strong performer over the next decade. This is thanks to the strength of its ANZ and China businesses and its investments in growth opportunities. These investments are expected to play a key role in the company achieving its aspirational revenue target of $5 billion by FY 2025. This compares to the revenue of $1,537.3 million it recorded in FY 2019.

Xero Limited (ASX: XRO)

A final option to consider is Xero. It is a leading NZ-based cloud-based business and accounting software provider. I think it is a great option due to the quality and stickiness of its product and the continued shift to online accounting. It recently announced that it has surpassed 2 million subscribers. However, this is still only a small portion of a massive global market opportunity. 

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James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended SEEK 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.