If you have $1,000 sitting in a bank account and no immediate use for it, I would suggest you consider putting it to work in the share market.
Especially given how low interest rates have fallen and the potential for superior returns in the share market.
Three top ASX shares that I would buy with these funds are listed below. Here’s why I like them:
The first ASX share to buy with $1,000 is payments company Afterpay. I think it is well-placed to continue its impressive growth over the 2020s thanks to the increasing popularity of its buy now pay later platform and its global expansion plans. In respect to the latter, the company is rolling out in-store in the United States, has just launched in Canada, acquired its way onto mainland Europe, and has its eyes on the massive Asia market. In addition to this, the company has announced plans to offer savings accounts and cash flow tools in 2021 Combined, I believe the future is very bright for Afterpay.
ELMO Software Ltd (ASX: ELO)
Another option to consider is ELMO. It is a cloud-based human resources and payroll software company that provides businesses with a unified platform to streamline a range of processes. It also just announced the acquisition of UK-based Breathe for an initial payment of 18 million pounds (A$32.4 million). Breathe is a fast-growing, scalable human resources platform for small businesses. Demand for its software has been growing strongly and led to ELMO delivering stellar annualised recurring revenue (ARR) growth in FY 2020. I expect more of the same in FY 2021 and beyond, especially given the accelerating shift to cloud-based solutions following the pandemic.
Jumbo Interactive (ASX: JIN)
A final ASX share to consider buying with that $1,000 is online lottery ticket seller Jumbo. It is the operator of the Oz Lotteries website and also provides a software-as-a-service (SaaS) offering – Powered by Jumbo. It is the latter that I think makes Jumbo a buy. With most lotteries around the world still offline, Jumbo’s SaaS business appears well-placed to benefit from the inevitable shift to online playing over the next decade.