The Motley Fool

Forget Bitcoin! I’d make £1m by investing £750 a month in UK shares in a Stocks and Shares ISA

Buying cheap UK shares regularly may not seem to be a sound means of making a million. That’s especially the case after the recent market crash, and with there being a number of risks that could cause a further downturn in share prices.

However, by investing in high-quality businesses regularly through a tax-efficient account such as a Stocks and Shares ISA, you could obtain a seven-figure portfolio. As such, it may be a better option than buying Bitcoin at the present time.

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...

Regular investing in UK shares

Investing regularly in UK shares could lead to surprisingly large returns in the long run. The FTSE 250, for example, has returned around 8% per annum over the past 20 years on a total return basis. Therefore, through buying small amounts often, you could benefit from the long-term growth potential of the stock market.

For example, assuming an investment of £750 per month in the FTSE 250 that generates 8% per annum over a 30-year period, you could have a portfolio valued at over £1m. Certainly, between now and the end of that period there are likely to be a number of bear markets that cause the value of your portfolio to decline temporarily. However, history shows that the stock market has always recovered from even the very worst declines. As such, by maintaining regular investments in UK shares, you could build a surprisingly large nest egg.

Buying high-quality stocks at bargain prices

Buying high-quality UK shares at cheap prices could be a means of obtaining even higher returns in the long run. At the present time, a number of strong businesses that are dominant in their industry are trading on low valuations due to the potential for a second market crash. This has caused weak investor sentiment that may enable you to obtain wide margins of safety that lead to more impressive capital gains in the long run.

Certainly, there is a chance that buying shares today will lead to paper losses in the short run due to the risks facing UK investors. However, a second market crash could be beneficial to regular investors with long-term outlooks as it will allow you to buy high-quality businesses at even lower prices to gain even further from a likely recovery for UK shares.

Bitcoin’s appeal

Bitcoin’s recent rising price understandably makes it seem attractive to investors who are doubting the prospects for UK shares. However, the stock market has been in similar situations previously, and has proven to be a reliable means for many investors to build £1m+ ISA portfolios.

Furthermore, with Bitcoin lacking fundamentals, facing regulatory risks and being of a limited size, its long-term prospects appear challenging. As such, now could be the right time to start buying high-quality FTSE 100 and FTSE 250 shares to benefit from the stock market’s long-term recovery potential.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

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.

Our 6 'Best Buys Now' Shares

The renowned 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.

Simply enter your email address below to discover how you can take advantage of this.

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.