I’ve been looking for top UK shares to buy in 2021. Here are three I think could make me money in my Stocks and Shares ISA during the next 10 years:
#1: Investing in the low-carbon future
The worsening climate crisis is prompting global legislators to get their skates on to reduce carbon emissions. And I believe this provides ample investment opportunities for UK share investors. I can invest in platinum miners, for example, whose material is used in catalytic converters. I can buy shares in investment companies which build wind farms, too. Or I can invest in businesses that make parts for energy storage technology at solar power plants. In truth, the list is vast.
One green UK share on my watchlist today is Velocys (LSE: VLS). This company turns household waste and forest residues into biofuels that are used in heavy goods transport and air travel. A word of warning, though: Covid-19 lockdowns and their impact on aviation traffic, allied with the impact of restrictions on broader economic conditions, could deal some damage to Velocys’s profits column in the near term.
#2: Another green machine
Speaking of green shares, I think TI Fluid Systems (LSE: TIFS) is another top UK stock to buy for the 2020s. This is because it manufactures fluid-carrying systems that are used in cars. Electric vehicles require much more of this sort of hardware, and sales of these low-carbon vehicles are shooting through the roof. Global sales of cars using electric technology soared 43% in 2020 to more than 3m units.
A word of warning, though. Price is still a barrier when it comes to purchasing an electric-based vehicle, of course. A prolonged pandemic, and a subsequent long downturn in the global economy, therefore, could damage sales of these cleaner cars in the short-to-medium term. This could deal a significant blow to TI Fluid Systems’s bright growth outlook. City analysts are expecting a 300% rise in annual profits in 2021, but forecasts can change. And a sharp share price correction could follow as a result.
#3: A top UK tech share
The number of cyber attacks has ballooned over the past decade. And the events of 2020 have widened the scope for hackers and fraudsters to have a field day in the future. The pandemic, for instance, has lit a fire under the online shopping segment and the number of people who choose to work from home.
This provides UK shares that provide cybersecurity to companies and individuals with ample revenues opportunities. Stocks like Avast (LSE: AVST), which provides protection in the home, at the workplace, and to mobile and broadband network providers too. Investors need to be remember, though, that hackers are becoming more and more sophisticated, and particularly as state-sponsored activity is on the rise. A high-profile failure of Avast’s systems could deal a hammer blow to the take-up of its products, and to its share price as a result.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Avast Plc. 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.