With the cash rate at an all-time low of 1.5% and the Westpac Banking Corp (ASX: WBC) economics team tipping it to stay that way until December 2020, if I had $10,000 sitting in a savings account I would consider putting it to work in the share market instead of gathering paltry interest.
Three top shares that I would consider investing this money into are listed below:
A2 Milk Company Ltd (ASX: A2M)
Investors interested in growth shares might want to consider this infant formula and dairy company. Concerns over insider selling and increasing competition have led to its shares dropping over 25% from their 52-week high. I believe this pullback has left its shares trading at a very attractive level for investors that are prepared to hold onto them for the long term. Especially given the way the company continues to grow its share of the infant formula market. In the ANZ region it now commands a 33% share and in China it holds a 5.6% share. This strong increase in demand led to the company posting a 64.5% jump in net profit to NZ$86 million during the first four month of FY 2019.
Australia and New Zealand Banking Group (ASX: ANZ)
If you're interested in dividend shares then Westpac or ANZ Bank could be worth considering. The shares of both these banking giants are currently trading on lower than average multiples and offer generous dividend yields. At present ANZ Bank's shares offer a trailing fully franked 5.9% yield, which is vastly superior to anything you'll find with savings accounts and term deposits. And with the end of the Royal Commission in sight, I feel that investors may soon return to the beaten down banking sector.
ELMO Software Ltd (ASX: ELO)
Investors that are interested in small cap shares with strong growth potential might want to consider ELMO Software. The fast-growing provider of cloud-based human resources and payroll software solutions listed on the ASX in 2017 and has been a massive success story. Strong demand has led to ELMO Software outperforming its prospectus forecasts by some distance. This outperformance looks set to continue in FY 2019 following its strong start to the year. It recently reported a 91% increase in quarterly cash receipts on the prior corresponding period to $10.3 million.
