As I mentioned here earlier today, the interest rates on offer with savings accounts right now are at some of the lowest levels imaginable.
In light of this, if I had $10,000 sitting in a savings account, I would consider investing it into the share market where the potential returns are immeasurably superior.
But where should you invest these funds? Three top ASX shares I think would be great candidates for a $10,000 investment are listed below:
Aristocrat Leisure Limited (ASX: ALL)
I think that Aristocrat Leisure would be a top option for a $10,000 investment. I’m a big fan of the gaming technology company due to its very positive long term growth outlook. Not only does the company have a core pokie machine business with some of the most in demand machines in the world, it has a fledgling digital business which is generating significant recurring revenues from its millions of daily active users. The pandemic has hit its core pokie machine business hard, but with most casinos now open again, demand for machines should start to pick up. Combined with the strong performing digital business, Aristocrat Leisure’s growth looks likely to accelerate in 2021.
CSL Limited (ASX: CSL)
While the CSL share price may not be the bargain buy it was in July, I don’t believe for a second that it is too late to invest in one of Australia’s highest quality businesses. Due to its core plasma business, the growing Seqirus influenza business, and its growing pipeline of new therapies and vaccines, I expect the company to continue growing its earnings at a solid rate for the foreseeable future. This could make it well worth considering a long term-focused investment in CSL’s shares today.
Xero Limited (ASX: XRO)
One of my favourite tech shares on the local market would have to be this cloud-based business and accounting software company. Although its growth in the U.S. has been a touch slower than many had hoped, I think it is well worth being patient with it. At present Xero has 241,000 subscribers in North America, compared to 914,000, subscribers in the materially smaller ANZ market. However, due to the quality of its platform, I believe Xero will win a good share of the massive U.S. market in the next decade. This should underpin strong recurring revenue and earnings growth long into the future.
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Returns as of 6th October 2020
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. 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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