If you're in the very fortunate position of having $100,000 in a savings account and have no immediate use for it, I would suggest you consider putting it to work in the share market.
Especially given how most major banks are offering savers base interest rates of just 0.05% with their savings accounts at present.
This means that even with $100,000 in one of these saving accounts, you would only gain an incredibly pitiful $500 of interest each year.
Why the share market?
The Australian share market has generated an average return of 9.2% per annum over the last 30 years.
If the market were to do the same over the next 12 months, an investment of $100,000 would generate a return of $9,200 on your investment. That's a difference of $8,700.
But why stop there? If you're able to keep these funds invested for longer, they could potentially grow notably larger.
For example, a $100,000 investment earning 9.2% per annum for 10 years would be worth $241,000 at the end of the period.
Keep these funds invested for 20 years and it'll be worth $580,000 if you average that same return each year.
But where should you invest these funds?
I think the three ASX shares listed below would be great options for these funds and could even provide stronger than average returns for investors.
Altium Limited (ASX: ALU)
Altium is an electronic design software provider. I believe it could be one of the best buy and hold options on the ASX due to the Internet of Things and artificial intelligence booms. These markets are underpinning the proliferation of electronic devices globally and supporting strong demand for its award-winning software.
Appen Ltd (ASX: APX)
Another option to consider is Appen. It is a leading developer of high-quality, human annotated datasets for the machine learning and artificial intelligence markets. Thanks to the strong growth of these markets and its leadership position, I believe Appen is well-placed to deliver strong growth over the next decade.
ResMed Inc. (ASX: RMD)
Another top ASX share to consider investing these funds into is ResMed. It is a medical device company which is focused on the sleep treatment market. I believe the company is well-positioned to deliver strong long-term earnings growth thanks to its industry-leading products and significant market opportunity.
