Here’s how £500 a month could become £1m when invested in UK shares

first_img 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. Peter Stephens | Sunday, 4th October, 2020 Image source: Getty Images Simply click below to discover how you can take advantage of this. Here’s how £500 a month could become £1m when invested in UK shares See all posts by Peter Stephens Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. “This Stock Could Be Like Buying Amazon in 1997” The stock market crash may have made some investors more cautious about investing money in UK shares. The FTSE 100, for example, continues to trade over 20% lower than it did at the start of the year. It also faces an uncertain near-term outlook.However, the track record of the stock market shows that it has the potential to turn modest amounts of capital into large portfolio valuations. Therefore, while stock prices are currently relatively cheap, now may be the right time to start investing £500, or any other amount, on a monthly basis in a diverse range of stocks. Over the long run, it could lead to a £1m portfolio.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…The track record of UK sharesEven after the recent disappointing performance of many UK shares, the stock market has delivered relatively impressive returns over the long run. For example, the FTSE 100 has risen nearly sixfold since its inception in 1984. When reinvested dividends are added to that figure, it works out as an annualised total return of around 8%.Assuming the same rate of return on a monthly investment could lead to a large portfolio in the long run. For example, £500 invested each month over a period of 25 years could be worth £480,000. Over a 35-year period it could be worth £1.15m. Therefore, sticking with the stock market instead of buying less risky assets could be a shrewd move for any investor who is seeking to build a nest egg in the long run.Investing money todayClearly, UK shares have not always produced returns that are in the high single-digits on an annualised basis. This year, for example, the index seems set to underperform versus its historic averages, with risks such as the US election and coronavirus continuing to cause a degree of caution among investors.However, such periods occur relatively frequently. For example, the global financial crisis caused the FTSE 100 to lose over half of its value in a matter of months. Similarly, the dot com bubble in the early 2000s led to major declines for many shares. Other bear markets have taken place, while events such as market corrections and downturns occur fairly regularly.Long-term investingFor short-term investors in UK shares, such periods can be problematic. However, for long-term investors, they provide an opportunity to buy high-quality companies at even lower prices. This can lead to higher returns in the long run, with the stock market having an excellent track record of recovering from its various downturns to post new record highs.By maintaining your regular monthly investment through difficult periods for the stock market, you can benefit from its long-term growth potential. It may even allow you to build a £1m portfolio during your lifetime as it recovers from its present challenges. Our 6 ‘Best Buys Now’ Shares 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. Enter Your Email Addresslast_img read more

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