Given the bleak outlook for interest rates in Australia, if I had $5,000 sitting in a bank account, I would put it to work in the share market.
This is because the potential returns on offer with ASX shares are vastly superior to the 0.05% base rate you'll get on the Australia and New Zealand Banking GrpLtd (ASX: ANZ) Online Saver account.
But which ASX shares should you buy? Here are three top ASX 200 shares which I think could provide strong returns for investors over the coming years:
Altium Limited (ASX: ALU)
I think this electronic design software provider is a great long term investment option. Especially after recent weakness in the Altium share price means it is trading 20% lower than its 52-week high. This weakness has been caused by a disappointing performance in FY 2020. However, it is worth noting that this has been caused by the pandemic and should only be a short term headwind. Looking ahead, I believe its outlook is as positive as ever. This is thanks to its exposure to the Internet of Things boom which looks like to accelerate in the coming years thanks to 5G internet.
Nanosonics Ltd (ASX: NAN)
Another top share that I would invest $5,000 into is Nanosonics. I think the infection control company has a very bright future ahead of it thanks to its market-leading disinfection system for ultrasound probes. Although it has been growing its footprint materially over the last few years, it still only has a 19% share of its global addressable market. Given its status as the best in its class, I expect further market share gains in the coming years. This should lead to strong unit sales growth and recurring revenues from the consumables it requires. But perhaps best of all, is that Nanosonics is planning to launch new products in the near future targeting unmet needs. If these are anywhere near as successful, it could launch the Nanosonics share price materially higher over the coming years.
Nearmap Ltd (ASX: NEA)
A final share to consider investing $5,000 into is Nearmap. It is a leading aerial imagery technology and location data company. Its products allow users to conduct accurate virtual site visits without leaving the home or office. This ultimately enables informed decisions, streamlined operations, and, importantly, significant cost savings. Given the quality of its software and the highly fragmented market it operates in, I believe it is well-positioned to grow its market share materially in the coming years. And with the Nearmap share price down 36% from its 52-week high, now could be an opportune to make a patient long term investment.
