If you're lucky enough to have $10,000 sitting in a savings account and no immediate use for it, I would suggest you consider putting it to work in the share market where the potential returns are vastly superior.
But where should you invest these funds? I think the two top ASX 200 shares listed below would be great options:
Nanosonics Ltd (ASX: NAN)
The first ASX 200 share to consider buying with $10,000 is Nanosonics. It is a leading infection control company which provides a market-leading disinfection system for ultrasound probes. I'm a big fan of Nanosonics' business model. As well as selling the units, the company also sells consumable products that the system requires to function. This means that as its installed base grows, so too does its recurring consumables revenues.
The good news is that its installed base, which is growing quickly, now stands at 22,500 units. This represents just under 19% of its global market opportunity of 120,000 units. I feel this gives it a long runway for growth from this product alone. However, another big positive is the impending release of new products targeting unmet needs. Not a lot is known about the products, but management has revealed that they have similar market opportunities. If they are a success, I believe they could underpin explosive growth in the 2020s.
NEXTDC Ltd (ASX: NXT)
Another ASX 200 share which I think could be a good option for a $10,000 investment is NEXTDC. It is a data centre operator with a portfolio of world class centres in key locations across Australia. NEXTDC has been growing at a very strong rate over the last few years thanks to the increasing demand for capacity at its centres.
This has continued in FY 2020, with NEXTDC reporting revenue of $97.7 million and underlying operating earnings of $50.9 million in the first half. This represents an 8% and 21% increase, respectively, over the prior corresponding period. Pleasingly, since then, demand for its data centres has increased thanks partly to the pandemic. The work from home initiative appears to have accelerated the shift to the cloud and looks set to underpin an even stronger second half result. And with more and more infrastructure moving to the cloud, I expect this positive trend to continue for some time to come. This could make NEXTDC a great long term option for investors.
