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.
And if you have some funds leftover, the five recommendations below look like potential market beaters…
We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- ASX winners and losers from last week
- 3 ASX 200 shares to watch this week
- ASX 200 Weekly Wrap: ASX bears take control as market volatility returns
- 5 things to watch on the ASX 200 on Monday
- Why the Healius share price will be in the spotlight tomorrow morning
James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Where to invest $10,000 into ASX 200 shares immediately appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3e8XYIY
Leave a Reply