Given how low interest rates have fallen, if I had $50,000 sitting in a savings account, I would consider putting it into the share market where the potential returns are vastly superior.
But where should you invest these funds? There are a lot of quality options for investors to choose from, but three that I believe could generate strong returns for investors in the future are listed below:
a2 Milk Company Ltd (ASX: A2M)
This infant formula and fresh milk company is one of my favourite growth shares. Over the last five years its shares have smashed the market thanks to its explosive profit growth. This has been driven by its expanding fresh milk footprint and the unquenchable appetite for its infant formula in China. Pleasingly, despite its incredible sales growth in the key market, it still only has a consumption market share of 6.6%. I believe this gives a2 Milk Company a long runway for growth over the next decade.
Kogan.com Ltd (ASX: KGN)
Another share which I think could grow materially over the next decade is Kogan. I believe the ecommerce company is well-positioned to benefit from the shift to online shopping which has been accelerated by the pandemic. Especially given the increasing popularity of its products and its growing customer base. Kogan recently revealed that 126,000 active customers were added during May, to bring the total to 2,074,000. This was despite many retail stores reopening during the month. This strong customer growth has underpinned the more than doubling of its sales and earnings quarter to date.
Pushpay Holdings Group Ltd (ASX: PPH)
A final ASX share that I believe could generate strong returns for investors over the long term is Pushpay. This exciting tech company provides a donor management and engagement solution that serves over 10,500 churches around the world. The increasing demand for its platform has led to stellar operating revenue and profit growth over the last few years. Pleasingly, it is still scratching at the surface of its addressable market. And due to the quality of its offering, I remain confident it will win a greater slice of this market over the next decade. This should drive strong earnings growth as it scales.
