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I’d invest £10k in these 2 cheap FTSE 100 shares today to make a million

Investing in the FTSE 100 today may not seem to be a sound means of increasing your chances of making a million. After all, the world economy faces a highly challenging future that could lead to difficult trading conditions for many businesses.

However, with valuations on offer across the index appearing to factor in many of the risks faced by FTSE 100 members, now could be the right time to buy a diverse range of companies for the long run.

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Here are two such companies that could improve your financial prospects, and may increase your chances of obtaining a seven-figure portfolio.

Polymetal

Gold miners such as Polymetal (LSE: POLY) are likely to benefit from a recent rise in the price of precious metals. The gold price is close to a record high and could continue to move upwards in the short run owing to rising demand for perceived safer assets.

Polymetal recently reported a 5% rise in production in the first quarter of the year. This contributed to a 9% rise in its revenue for the period, with it currently on track to meet production guidance for the full year.

In 2020, the FTSE 100 company is expected to deliver a 41% rise in its net profit. Despite this, it currently trades on a relatively attractive valuation. It has a price-to-earnings growth (PEG) ratio of just 0.3. As such, now could be the right time to buy a slice of it for the long run. You see, its operational and financial performance appears to be relatively attractive during an uncertain period for the wider economy.

FTSE 100 housebuilder Barratt

Unlike precious metals miners, housebuilders such as Barratt (LSE: BDEV) have experienced a highly challenging period over recent months.

The FTSE 100 company recently reopened its construction sites and sales offices following a period of closure during lockdown. While this is likely to be positive news for the company, there continues to be a lack of clarity as to how demand for new homes will be impacted by a weak economic outlook. In fact, with unemployment set to rise and consumer confidence at a low level it would be unsurprising for the company’s sales performance to remain at a low ebb over the coming months.

However, Barratt’s share price appears to factor in many of the risks it currently faces. It trades 30% lower than it did at the start of the year, and may therefore offer a wide margin of safety to new investors.

Furthermore, with Barratt being the UK’s largest housebuilder and it having a strong balance sheet compared to some of its peers, it may be in a good position to extend its competitive position to deliver higher profit growth over the coming years. Therefore, now could be the right time to buy a slice of it.

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Peter Stephens owns shares of Barratt Developments. 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.