Considering the interest rates on offer with many savings accounts are just 0.05% per annum at present, I would sooner invest in the share market than keep it in one of these accounts.
After all, with a rate as low as that, if you had $10,000 in one of these savings accounts, you would earn interest of just $50 a year.
I believe significant better returns can be found on the share market if you invest wisely.
But which ASX shares should you invest $10,000 into? Here are three that I would buy today:
a2 Milk Company Ltd (ASX: A2M)
The first option to consider investing $10,000 into is a2 Milk Company. It is a New Zealand-based infant formula and fresh milk company with a focus on a2-only products. The a2 protein is believed to be easier to digest than the a1 protein, giving the company’s products a unique selling point. And while other companies have tried to copy its products, this has only reinforced its strong brand. This is particularly the case with Chinese consumers, who are buying its products in increasing numbers. Pleasingly, despite its strong sales growth in the country, a2 Milk Company still only has a modest market share. This gives it a long runway for growth over the next decade.
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
Another option for investors to consider buying is the BetaShares Asia Technology Tigers ETF. I think this exchange traded fund could provide strong returns for investors in the future due to its exposure to a large number of the fastest growing tech companies in the Asia market. These companies are revolutionising the lives of billions of people in the region and look very well-positioned for growth. Among the companies in the fund you will find the likes of ecommerce giant Alibaba, search engine company Baidu, and WeChat owner, Tencent.
NEXTDC Ltd (ASX: NXT)
A final option to consider investing $10,000 into is NEXTDC. It is the region’s most innovative Data Centre-as-a-Service provider and busy building the infrastructure platform for the digital economy. This puts NEXTDC in a strong position to benefit from the cloud computing boom which continues to accelerate. It was because of this boom that NEXTDC was able to deliver a 23% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $104.6 million in FY 2020. More of the same is expected in FY 2021, with management guiding to EBITDA of $125 million to $130 million.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of A2 Milk. 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.
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