If I had $20,000 sitting in a bank account earning paltry interest I would put it to work in the share market.
Over the last 12 months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has provided a total return of 7%. This is vastly superior to anything on offer from savings accounts or term deposits.
With that in mind, here are three top shares which I would look to invest that money into:
A2 Milk Company Ltd (ASX: A2M)
While I would prefer to wait to see if any profit-taking leads to a pullback in this dairy company's shares in the near future, investors that are looking to make a long-term buy and hold investment may just want to consider picking up shares right away. After all, 50 cents to $1.00 isn't likely to make a whole lot of difference in 10 years' time. At that point I think the company's share price could be significantly higher than where it is today if its infant formula products continue to win market share in the lucrative China market.
ResMed Inc. (CHESS) (ASX: RMD)
This global healthcare company specialises in the treatment of sleep apnoea and other chronic respiratory diseases. I'm very bullish on RedMed's future due to its position as a market-leader in an industry which I expect to grow significantly in the long-term. I believe this puts it in a position to deliver above-average earnings growth and strong share price returns for shareholders for the foreseeable future. In the first-half of FY 2018 ResMed achieved non-GAAP income of US$143.8 million, up 39% on the prior corresponding period.
Webjet Limited (ASX: WEB)
Thanks to the seismic shift to online travel booking, Webjet recently delivered yet another half-year result that outperformed the market's expectations. Furthermore, the company reaffirmed its full-year EBITDA guidance of $80 million. But judging by its first-half performance, I think there's a strong chance that Webjet could outperform its guidance. Especially if it continues to grow its bookings well ahead of the industry average.
