If you have $1,000 in a savings account and no immediate plans for it, I would suggest you consider investing it into the share market.

After all, the potential returns on offer from the share market are vastly superior to the paltry interest rates being offered by 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 invest $1,000 into these shares for 10 years:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first option to consider investing $1,000 into is the BetaShares NASDAQ 100 ETF. As its name implies, this popular exchange traded fund provides investors with exposure to the NASDAQ 100. This index comprises the 100 largest non-financial shares on the NASDAQ.

You’ll no doubt be familiar with the majority of the companies on this index as they are largely household names. This includes coffee giant Starbucks, tech behemoths Amazon, Apple, Facebook, and Google, electric car company Tesla, and retailer Costco.

As a whole, I think these 100 companies have the potential to grow at a quicker rate than the rest of the global economy over the next decade. In light of this, I expect the BetaShares NASDAQ 100 ETF to provide investors with strong returns for many years to come.

ResMed Inc. (ASX: RMD)

Another option to consider investing $1,000 into is ResMed. I think it is one of the best long term options on the Australian share market and well-positioned for growth over the next decade.

This is because the sleep treatment focused medical device company looks well-placed to profit from the proliferation of obstructive sleep apnoea (OSA). Management estimates that just 20% of OSA sufferers have been diagnosed at this point. This means that there is still a significant market opportunity for the company to capture in the future.

I expect this to underpin above-average earnings growth and drive market-beating returns for investors for the foreseeable future.

More reading

• How to retire early using ASX shares
• $2,500 invested in these 3 ASX shares could make you a fortune in 10 years
• Why AP Eagers, Lendlease, Pushpay, & ResMed shares are sinking lower
• 3 ASX 200 healthcare shares I’d buy today
• I would reinvest my Macquarie dividends in these top ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended ResMed Inc. 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 Got $1,000 to invest? These quality ASX shares could be the ones to buy appeared first on Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) has seen strong share price gains across the board today. In fact, the index was up by a very healthy 2.5% at the close. This follows strong share price gains yesterday, as general market sentiment continues to lift. These gains are largely being driven by hopes the Australian economy can start recovering from the coronavirus pandemic more quickly than anticipated.

Easing restrictions bring hope to the travel sector

ASX 200 travel shares have been punished harshly in recent months. With severe lockdown restrictions coming into effect in March, both local and international travel has virtually ground to a halt since then.

However, it is now looking increasingly likely that domestic travel will gradually start to pick up in the months ahead. As the Australian government begins to ease lockdown restrictions, renewed hope is starting to flow through to the travel sector. Increased optimism surrounding a possible coronavirus vaccine is also boosting spirits amongst ASX 200 investors.

It’s true that the possibility of international travel resuming to any significant degree before the end of this year is still highly unlikely. There is, however, the possibility of a trans-Tasman bubble that will open up travel between Australia and New Zealand later in the year.

This good news is helping spur on a partial rebound amongst heavily sold off shares within the ASX 200 travel sector. Corporate Travel Management Ltd (ASX: CTD) is up 3.8% today whilst Webjet Limited (ASX: WEB) climbed by 5.5%. Likewise, Flight Centre Travel Group Ltd (ASX: FLT) is up by 8.8% and Qantas Airways Limited (ASX: QAN) surged by 4.9%.

Travel bookings segment hit particularly hard

In the travel bookings segment, Flight Centre has been hit particularly hard by the economic fallout from COVID-19. This is primarily related to the company’s high fixed overhead costs. These are necessary to support the company’s nationwide chain of retail outlets. Despite its strong rally today, Flight Centre’s share price is still down by over 60% since January. In a recent capital raising, Flight Centre successfully raised $700 million from institutional and retail shareholders. The company has also undertaken a range of cost reduction initiatives in order to make it through these unprecedented market conditions.

Due to its online only business model, Webjet may have less overheads than its main rival, Flight Centre. However with bookings drying up, the company has also been forced to enter survival mode in recent months. The Webjet share price has also been hit hard by a highly dilutive equity raising back in April. It would seem though that investors are now feeling a bit more optimistic that domestic flight bookings may begin again soon. Likewise, Corporate Travel Management will be hoping that some corporate travel in Australia will begin to resume in the months ahead. This should continue providing renewed optimism to its investors.

Meanwhile, our national airline carrier, Qantas, has seen its fleet of planes largely grounded over the past few months. However, the company secured additional debt funding of $550 million in early May. It’s strong cash position makes it relatively well placed to ride out the remainder of the coronavirus crisis, before domestic travel starts to resume. This has helped to see its share price rise higher today as news surrounding the sector continues to look more optimistic.

More reading

• ASX 200 rallies hard, no longer in bear territory
• Latest spending data could drive the ASX retail sector higher
• Up another 5%: Is the Webjet share price a buy?
• The latest ASX shares that brokers have just upgraded to “buy”
• Why these 3 ASX 200 tech shares offer great value

Motley Fool contributor Phil Harpur owns shares of Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

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