Why I’d buy cheap UK shares in an ISA today and hold them to 2030

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. See all posts by Peter Stephens Why I’d buy cheap UK shares in an ISA today and hold them to 2030 Enter Your Email Address Buying cheap UK shares today and holding them over the long run could prove to be a profitable strategy. The past performance of the stock market and the economy suggests a recovery from present challenges is likely to take place in the coming years.As such, through using a tax-efficient account such as a Stocks and Shares ISA, it may be possible to capitalise on the growth prospects of a number of companies and sectors.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…Cheap UK shares could deliver growth in the long runPurchasing any asset at a lower price, rather than a higher price, could mean there’s greater scope for capital growth. In the case of cheap UK shares, they may be able to benefit to a greater extent than their index peers from a stock market recovery that lifts investor expectations about their future performance.Such a strategy has been successful in the past. For example, investors who purchased a diverse range of FTSE 100 shares following the global financial crisis in 2009 are likely to have benefitted from the doubling in price of the index in the following years.Similarly, buying stocks after the 1987 crash and the dot com bubble’s bursting, when they traded at low prices in many cases, could have provided scope for capital growth that’s above the stock market’s long-term average.A long-term investment horizonOf course, it can take many years for today’s cheap UK shares to produce high returns. The economy’s outlook is very uncertain at the present time. So this could mean many industries face tough operating conditions for a prolonged period of time.As such, it may be a shrewd move to take a long-term view of any UK stocks purchased at the present time. In the coming months, they may experience further challenges as the cost of the coronavirus pandemic becomes clearer. This could lead to paper losses, or negative returns, for investors that take time from which to recover.History suggests investors who have a long time horizon have been able to overcome short-term volatility to benefit from the stock market’s high single-digit annual total returns.Investing in a tax-efficient manner via an ISADue to some UK shares currently trading at cheap prices, it could be a sound move to buy them in a tax-efficient account such as an ISA. Investments made through an ISA are exempt from tax, including capital gains tax and dividend tax.This could lead to higher net returns for an investor should the stock market continue its long-term trend to produce capital growth and dividends that are relatively attractive.Through building a diverse ISA portfolio of cheap stocks today, it may be possible to obtain a surprisingly large nest egg over the long term. Although risks are high, and volatility is likely, equity markets could deliver growth in the coming years that lifts the prices of today’s undervalued shares. Get the full details on this £5 stock now – while your report is free. Our 6 ‘Best Buys Now’ Shares Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. 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. Simply click below to discover how you can take advantage of this. Image source: Getty Images FREE REPORT: Why this £5 stock could be set to surge Peter Stephens | Tuesday, 2nd February, 2021 last_img read more