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.

More reading

• Got $2,500? I’d buy these 2 ASX shares in a heartbeat
• Which is the best ASX entertainment media share?
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Freedom Foods Group Limited and SEEK 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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ASX shares are a great way to great your wealth with a small starting amount. You don’t need to have a huge amount of cash set aside like having a house deposit.

With everything that’s going on with the coronavirus it’s hard to say what the shorter-term outlook is for some ASX shares.

But there are some picks that I’d buy in a heartbeat:

ASX share 1: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is electronic donation business. At the moment its client base is focused on large and medium US churches which are obviously huge sources donations each year. A large amount of those donations were in cash.

But now with the social distancing and restrictions, electronic donations very valuable to churches. Even if total giving reduces, it seems electronic giving will dramatically rise. It also helps that Pushpay offers a livestreaming option.

I think Pushpay is still an underappreciated ASX share by investors. Obviously the Pushpay share price has jumped recently. But I think FY21 alone looks very promising. The earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) is expected to just about double.

Pushpay is still expecting further strong revenue growth with expanding profit margins. It’s still targeting over 50% of the medium and large church segments which is an opportunity representing over US$1 billion in annual revenue. That’s a big, long-term growth runway. 

I’d buy it in a heartbeat because I think the next three to five years could be very promising.

Pick 2: Bubs Australia Ltd (ASX: BUB)

Bubs is another ASX share I’d be very happy to buy today. The growth it has generated over the past three years has been very impressive. I like how it has become a vertically integrated player with its own canning facility.

The infant formula business is consistently expanding its distribution netowrk. Its growth in China is of course a major part of the opportunity. The FY20 third quarter Chinese revenue rocketed 104% compared to the prior corresponding period.

Outside of China and Australia, its ‘other markets’ revenue rose by 20 times in the FY20 third quarter, with significant growth in Vietnam. This represented 12% of total sales. That’s very promising for the ASX share.

I was particularly pleased to see that Bubs generated positive cashflow of $2.3 million in the quarter. I think this is a great milestone. If Bubs remains cashflow positive then it’s a much safer bet.

Foolish takeaway

I think both of these ASX shares have great prospects. They’re one of the few shares to see acceleration of growth during this period, adding onto their already impressive outlooks. Both are seeing rising margins, so it’s hard to pick a favourite. I’d want to buy both!

More reading

• Where to invest $10,000 into ASX shares immediately
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash
• Where growth, income, and value investors can invest right now

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended BUBS AUST FPO. 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 $2,500? I’d buy these 2 ASX shares in a heartbeat appeared first on Motley Fool Australia.

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