Given the bleak outlook for interest rates in Australia over the next few years, if I had $10,000 sitting in a savings account, I would be looking to put it to work in the share market.
But where should you invest $10,000? Three top ASX shares that I would buy with these funds are listed below. Here's why I like them:
Freedom Foods Group Ltd (ASX: FNP)
Freedom Foods is a growing food company with a focus on healthy eating. After several years of investing heavily in its business, the company now looks well-positioned for strong growth in the coming years. Especially given the increasing demand it is experiencing in key channels and its exposure to on trend categories such as dairy, nutritionals, and plant beverages. This was evident in the first half of FY 2020 when Freedom Foods delivered a 43.4% increase in sales and a 42.1% lift in operating net profit after tax.
Pushpay Holdings Group Ltd (ASX: PPH)
Another option to consider investing $10,000 into is Pushpay. It provides a donor management platform to the faith, not-for-profit, and education sectors. The company has worked hard over the last few years to carve out a leadership position in the sector and is now reaping the rewards. In FY 2020 the company grew its operating profits at an explosive rate. Pleasingly, thanks to increasing demand, its guidance for FY 2021 implies another doubling of profits. And given how it is still only scratching at the surface of its sizeable market opportunity, I believe there is plenty more to come from Pushpay over the next decade.
SEEK Limited (ASX: SEK)
A final share to consider buying with $10,000 is SEEK. While times are hard because of the pandemic, I think this job listings company would still be a great option due to its positive long term growth outlook. This is due to its international operations and particularly its China business. I believe the latter has the potential to underpin strong earnings growth over the next decade. So, with its shares down 20% from their high, now could be an opportune time to snap them up with a long term view.
