If you can spare $1,000 every other month to invest into the share market, you could generate significant wealth over the long term.
Over the last 30 years the Australian share market has provided investors with a return of 9.1% per annum on average.
Based on this, if you had invested $1,000 every second month, bringing your total annual investment to $6,000, your investments would have grown to be worth approximately $910,000 today if you achieved the market return.
I believe this demonstrates why investing with consistency, patience, and a long term view can be a very rewarding endeavour.
With that in mind, here are three shares that I think would be great options for that first $1,000 investment:
Altium Limited (ASX: ALU)
Research firm Statista is forecasting the Internet of Things (IoT) market to be worth US$1.6 trillion in 2025. This will be a significant increase from an estimated US$212 billion in 2019. I feel this bodes extremely well for Altium due to its exposure to this lucrative market with its award-winning printed circuit board (PCBs) design platform, Altium Designer. As the majority of IoT devices contain PCBs inside them, I expect this positive trend to drive increasing demand for its platform over the next decade.
Audinate Group Limited (ASX: AD8)
Audinate is a digital audio-visual networking technologies provider which could be well worth considering. This is thanks largely to its increasingly popular Dante solution. This award-winning audio over IP networking solution distributes digital audio and video signals over computer networks rather than through traditional analogue cables. This is a much more efficient way of doing things and has proven very popular with end users. Whilst this has led to some explosive sales growth in recent years, it is still only scratching at the surface of its massive market opportunity.
Serko Ltd (ASX: SKO)
A final option to consider investing $1,000 into is Serko. It is a fast-growing online travel booking and expense management provider. The main attraction to the company for me is its Zeno Travel solution. It provides AI-powered end-to-end travel itineraries, cost control and travel policy compliance to corporate customers. Serko has been experiencing strong demand for Zeno and its other products in recent years, leading to stellar recurring revenue growth. I feel confident there will be more of the same in FY 2020 and beyond.
