If you have $50,000 in a savings account and no immediate use for it, I would suggest you consider investing it into the share market.
This is because if you have a long enough investment time horizon, the share market could turn these funds into a life-changing sum.
As of the end of June, the Australian share market had provided investors with an average annual return of 8.7% over the last 30 years.
This means that if you had invested these funds into the ASX in June 1990 and earned the market return, they would now be worth a sizeable $610,000.
If you can then earn the same return for a further six years, the power of compounding will turn these funds into a cool million dollars.
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What about the future?
While nothing is certain, I feel confident the share market will generate a similar return over the next 30 years.
So, if you're happy with this level return, then you could invest these funds into an exchange traded fund (ETF) that tracks the S&P/ASX 200 Index (ASX: XJO). The BetaShares Australia 200 ETF (ASX: A200) allows investors to do this.
There is also the Vanguard Australian Shares Index ETF (ASX: VAS) to consider. This ETF gives investors exposure to the 300 shares listed on the S&P/ASX 300 index.
But you don't have to settle for that. The ASX 200's 8.7% per annum return over the last 30 years is an average. This means some shares underperform it and others beat it.
If you're looking for future market beaters, then I would suggest you look at investing in the likes of electronic design software company Altium Limited (ASX: ALU), artificial intelligence services provider Appen Ltd (ASX: APX), and biotherapeutics giant CSL Limited (ASX: CSL).
I believe these companies are well-positioned to grow their earnings at a strong rate over the next decade and beyond. This could lead to their shares generating market-beating returns, turning that $50,000 into something significantly larger.
