If I were fortunate enough to have $50,000 sitting in a savings account, I would consider putting it to work in the share market.
After all, the potential returns on offer are vastly superior to what you'll get from an Australia and New Zealand Banking GrpLtd (ASX: ANZ) savings account.
For example, at present, ANZ is offering a lowly 0.05% per annum standard variable rate. This is roughly in line with what the other big banks are offering and would yield just $250 in interest per year.
As a comparison, over last 30 years the Australian share market has generated an average annual return of approximately 9.5%. If it were to do this again over the next 12 months, your $50,000 would turn into $54,750.
With that in mind, I have picked out three top shares which I think could provide strong returns for investors over the coming years. They are named below:
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Altium Limited (ASX: ALU)
Altium is a printed circuit board design software company which is benefitting greatly from the rapidly growing Internet of Things (IoT) market. With more and more electronic devices being designed and manufactured, the company has been experiencing increasing demand for its key Altium Designer product. And with the IoT market tipped to grow materially in the future, Altium looks well-placed for growth.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another ASX share to consider buying is Domino's. I think the pizza chain operator would be a great option for these funds due to its strong brand, popular product, and its positive long term outlook. Over the next five years Domino's aims to deliver annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. I expect this to underpin strong earnings growth for many years to come.
NEXTDC Ltd (ASX: NXT)
A final ASX share to consider buying is this data centre operator. NEXTDC has been experiencing significant and growing demand for its world class centres over the last couple of years. This has particularly been the case in 2020 after the pandemic accelerated the shift to the cloud. I expect this trend to continue and support very strong earnings growth as it scales.
