Have £100 to invest each month? I’d buy cheap UK shares in an ISA after the stock market crash

first_imgHave £100 to invest each month? I’d buy cheap UK shares in an ISA after the stock market crash “This Stock Could Be Like Buying Amazon in 1997” Peter Stephens | Sunday, 8th November, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Deciding to invest money in UK shares after the stock market crash may seem very risky. Certainly, in the short run, there’s the potential for share prices to fall further as a result of political uncertainty and a weak economic outlook.However, on a long-term basis, it could prove to be a sound move. The FTSE 100 and FTSE 250 may offer higher return prospects over the long run than other assets. Furthermore, many high-quality companies seem to be trading on low valuations.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As such, now could be the right time to start investing regularly in British shares through a tax-efficient account such as an ISA.Long-term prospects for UK shares after the stock market crashMany UK shares face an uncertain period following the stock market crash. A weak economic outlook that looks set to be prolonged by the ongoing coronavirus pandemic could mean that many FTSE 100 and FTSE 250 companies face tough operating conditions.However, over the long run, they’ve the potential to deliver sound recoveries. After all, the stock market has always recovered to post new record highs following every one of its previous bear markets. Therefore, buying UK shares now on a long-term view could prove to be a sound move.Moreover, the potential for a second stock market crash may mean there are further buying opportunities ahead. Those investing on a regular basis, such as each month, could stand to benefit from falling stock prices in the short run. They may provide greater margins of safety and greater capital appreciation potential over the long run.The relative appeal of FTSE 100 and FTSE 250 sharesThe stock market crash may have reminded investors of the potential volatility of UK shares. As such, other assets such as cash and bonds may seem more appealing. However, their long-term return prospects could significantly lag those of British shares.For example, cash savings accounts are likely to offer next-to-no returns over the coming months, and even years. Low interest rates mean it’s likely to be difficult to beat inflation when holding cash. Similarly, investment-grade bonds are set to offer disappointing yields for the same reason. Buy-to-let investment and precious metals, such as gold, may have some appeal in the short run. But their high prices mean a portfolio of UK shares may offer better value for money.As such, now could be the right time to start investing £100, or any other amount, each month in a selection of cheap UK shares after the stock market crash. Assuming an 8% return, which is in line with the stock market’s historic total return, a £100 monthly investment could be worth £230,000 over a 35-year timeframe.While not all investors will have such a long time to generate returns, the example shows that regularly investing in UK shares can pay off in the long run. See all posts by Peter Stephens Enter Your Email Address Image source: Getty Images. Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.last_img

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