Where I would invest $20,000 in the share market

Corporate Travel Management Ltd (ASX:CTD) shares are one of three that I would consider investing $20,000 into next week…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

With the cash rate at a record low and unlikely to be lifted any time soon, I believe the Australian share market is a great place to put any spare funds that are gathering dust in a high interest savings account.

If you're lucky enough to have $20,000 available to invest, this is where I would put these funds:

Aristocrat Leisure Limited (ASX: ALL)

At approximately 19x estimated FY 2019 earnings, I don't believe there is a growth share on the local market that offers a more compelling risk/reward right now than this gaming technology company. Thanks to its market-leading core pokie machine business and fast-growing digital business, I believe Aristocrat Leisure is capable of growing its earnings at an above-average rate for some time to come.

Corporate Travel Management Ltd (ASX: CTD)

Another growth share that I think is worth considering is Corporate Travel Management. I thought the corporate travel specialist posted one of the strongest full year results in August when it reported a 14% lift in revenue to $372.2 million and a 34% increase in underlying net profit after tax to $86 million. Pleasingly, I feel confident that this strong form can continue in FY 2019 and beyond due to recent acquisitions and the sizeable opportunities it has to meaningfully grow its share of several markets.

Rural Funds Group (ASX: RFF)

Investors in search of income might want to consider this real estate investment trust. As its name implies, Rural Funds has a focus on agricultural assets. It has a diverse and quality portfolio comprising 44 properties across six different agricultural sectors including cattle, wine, and cotton production. The properties have a weighted average lease expiry of 12.3 years, providing income stability and long-term rental growth via a mix of indexation mechanisms. This year management plans to pay a distribution of 10.43 cents per unit, equating to a forward yield of 4.8%. Based on this yield, a $20,000 investment would result in a pay check of $960 this year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and RURALFUNDS STAPLED. 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.

More on Growth Shares

Three excited business people cheer around a laptop in the office
Growth Shares

These amazing ASX shares could be compounding machines

Let's see why these quality shares could be key to generating big returns over the next decade.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Growth Shares

Where to invest $5,000 in ASX shares for growth

These shares could be top picks for investors looking for growth opportunities.

Read more »

A happy young woman in a red t-shirt hold up two delicious burritos.
Growth Shares

I think these 2 exciting ASX growth shares are buys today

These compelling investments have a great outlook.

Read more »

Happy man working on his laptop.
Growth Shares

EOFY 2025: 3 ASX 200 shares to buy for the year ahead

Looking for quality picks for the next financial year? Here are three quality picks that analysts rate as buys.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Growth Shares

Macquarie tips nearly 50% upside for this ASX 200 stock

Let's see which stock the broker is feeling bullish about this week.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Growth Shares

3 excellent ASX 200 growth shares brokers rate as buys

Let's see why they think investors should be snapping them up right now.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Growth Shares

Why I think these 2 ASX shares are ideal for growth investors

These investments are very compelling.

Read more »

Two brokers analysing the share price with the woman pointing at the screen and man talking on a phone.
Growth Shares

2 ASX shares highly recommended to buy: Experts

Analysts really like these stocks. Here’s why…

Read more »