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

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

Father and daughter with hands on a small plant.
ETFs

Focused on growth? Here are 3 ASX ETFs to consider

Growth investors must ignore the current market noise about tariffs and focus on the long-term horizon.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Growth Shares

Top brokers name 3 top ASX growth shares to buy now

Why are brokers feeling bullish on these names? Let's find out.

Read more »

Two plants grow in jars filled with coins.
Growth Shares

3 ASX 200 growth stocks up more than 100% in 1 year that could charge higher

It's been a memorable year for shareholders of these 3 companies.

Read more »

Afterpay share price a happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
Growth Shares

The pros and cons of buying Zip shares in June

Should investors buy now or wait until later?

Read more »

A smiling woman holds a Facebook like sign above her head.
Growth Shares

3 ASX growth shares I'd buy for the next 10 years

Let's see why these shares could be top picks for the long term.

Read more »

wheelchair user in an office talking on mobile phone
Growth Shares

Why I'd buy this ASX growth share instantly

I’m calling on this stock to deliver strong returns.

Read more »

A happy boy with his dad dabs like a hero while his father checks his phone.
Growth Shares

2 ASX growth shares to buy in June: experts

These businesses have strong growth potential.

Read more »

Rocket powering up and symbolising a rising share price.
Growth Shares

Buy these stellar ASX growth shares with $1,000

Analysts think these shares would be top buys right now.

Read more »