If you have $2,000 sitting in a savings account and no immediate use for it, I would suggest you consider putting it into the share market.
After all, the potential returns on offer are vastly superior to the paltry interest rates being offered by Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks.
Two top ASX shares that I think could generate very strong returns for investors over the next decade are listed below.
Here's why I would park $2,000 into these shares for 10 years:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is a donor management system provider with a focus on the faith, not-for-profit, and education sectors. Its innovative solutions simplify engagement, payments, and administration, allowing its users to increase participation and build stronger relationships with their communities. This morning Pushpay released its FY 2020 result and delivered further strong profit growth. It also provided its guidance for the year ahead, which revealed that it expects to double its operating earnings despite the coronavirus pandemic.
Looking further ahead, management is aiming to capture a 50% share of the medium and large church segments. It estimates this share of the market to be worth US$1 billion in annual revenue at present. Which is almost eight times more than the operating revenue of US$127.5 million it achieved in FY 2020. Due to the quality of its offering, I believe it has a very good chance of achieving this goal.
Xero Limited (ASX: XRO)
Another top share to consider investing $2,000 into with a long term view is Xero. It is a leading business and accounting software provider which continues to grow its market share at a rapid rate. This has been driven by its expansion internationally and its high quality software which is resonating with accountants and small businesses.
The good news is that despite it recently achieving 2 million subscribers, it is still only scratching at the surface of its massive market opportunity. A recent presentation reveals that less than 20% of the global (English-speaking) addressable market has adopted cloud accounting software. This should provide Xero with a long runway for growth over the next decade.
