How much do you think you would have now if you had invested $5,000 into the share market each year since 1990?
That's a total of $150,000 invested over a 30-year period. Maybe it would be worth $250,000 now? Or perhaps even half a million?
Well, you might be surprised to learn that if you earned the market return of 9.5% per annum, you would have generated even more wealth. Today, these investments would be worth approximately $825,000.
I believe this demonstrates how rewarding it can be to invest consistently over a long period.
With that in mind, I have picked out three top ASX shares which I believe would be great options for your first $5,000 investment:
Bubs Australia Ltd (ASX: BUB)
I think Bubs could be a good option for a $5,000 investment. It is an infant formula and baby food company which has been growing at a rapid rate. This has been driven by its expanding distribution footprint in Australia and increasing demand in the Asia market. The good news is that its distribution footprint has just expanded further and demand in China is accelerating. I believe this bodes well for its future earnings growth.
Freedom Foods Group Ltd (ASX: FNP)
Another ASX share to consider investing $5,000 into is Freedom Foods. It is a diversified food company with a focus on healthy eating. Its shares have fallen heavily this year after the pandemic hit a number of its sales channels hard. I believe these headwinds are only temporary and investors ought to take advantage of its share price weakness to buy shares. Especially given its very positive long term earnings growth outlook thanks to increasing demand for UHT dairy products, plant beverages, and cereals and snacks.
ResMed Inc. (ASX: RMD)
A final option for a $5,000 investment is ResMed. I believe the medical device company can continue growing its earnings at a solid rate for some time to come. This is thanks to its exposure to a sleep treatment market growing quickly due to the proliferation of sleep apnoea. I think ResMed will be one of the biggest winners in the market because of its high quality masks and software solutions.
