3 top penny stocks to buy in a Stocks and Shares ISA this July

I’m shopping for great low-cost UK shares to add to my Stocks and Shares ISA next month. Here are a few beauties on my shopping list.

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I’m busy searching for top penny stocks to add to my Stocks and Shares ISA this July.

A lot of investors don’t like to buy these sort of low-cost stocks because they can be prone to bouts of extreme price volatility. But as a long-term investor I’m not put off by the threat of temporary choppiness. In fact, the reluctance of many other share pickers to dive in gives me the chance to pick up an underpriced bargain or two.

Here are three great UK shares that trade below £1. I think they could help me make terrific long-term returns.

Engaging the Russian bear

I think Raven Property Group (LSE: RAV) could prove to be a wise long-term UK share to hold for a couple of reasons. Firstly, its network of commercial properties in Russia gives investors emerging market exposure. And secondly, I expect demand for its logistics and warehousing assets to soar in demand as e-commerce takes off in the country. Data Insights thinks 10m new online shoppers emerged during Covid-19-hit 2020.

Penny stock hunters need to remember that Russia’s oil-dependent economy could create problems for Raven Property in the years ahead. The acceleration of green energy could severely damage demand for Russia’s energy and this could in turn smack economic activity, including consumer spending. I still think this UK share merits serious attention though as the long-term rewards could be spectacular.

A brown bear sitting on a rock

Tuning into Africa’s telecoms boom

I think buying Airtel Africa (LSE: AAF) stock is another great way for UK share investors to play developing markets. This penny stock provides telecoms and money transfer services in more than a dozen African countries. Both these markets are tipped for stunning growth in the years ahead. Rising personal wealth levels are driving mobile phone usage higher across the continent. And low banking product penetration in Africa means that demand for Airtel’s money service is booming too.

All this explains why revenues at the business soared 15.4% year-on-year in the three months to March. A word of warning, though. The African telecoms market is also highly-competitive, creating huge dangers for Airtel Africa’s top and bottom lines.

A top penny stock in rude health

I also think Assura (LSE: AGR) is a great penny stock to buy this July. It’s an especially great stock for UK share investors who court little-to-no drama. This particular company invests in and rents out primary medical care properties in Britain. It therefore doesn’t have to worry about profits falling off a cliff if economic conditions worsen.

In fact, I expect Assura to go from strength to strength. The country’s population is rapidly ageing and so the sort of healthcare properties which this penny stock specialises in will become increasingly critical in the years ahead. I think it’s a splendid buy despite the risks that changing government healthcare policy could pose to its profits column.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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