Have £10k to invest today? I’d buy cheap FTSE 100 shares in an ISA in this stock market crash

first_img Peter Stephens has no position in any of the shares mentioned. 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. 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 Having £10k available to invest today could put you in a strong position to generate high returns from the FTSE 100. Admittedly, other assets such as cash and bonds may be less risky in the short run. But they may also fail to produce the high returns that are likely over the long run through buying FTSE 100 shares.As such, now could be the right time to buy cheap FTSE 100 stocks. Yes, they may yet fall further in the short run. But their long-term prospects appear bright compared to other popular assets.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…Investing £10k todayThe FTSE 100 is a far riskier investment than other mainstream assets such as cash and bonds in ‘normal’ economic times. However, at the present time, the difference between stocks and other assets when it comes to the risk of loss is likely to be far greater than usual. Some FTSE 100 companies are seeing their worst operating outlook for many years. This could lead to lower sales, a slump in profits and falling stock prices.As such, there is a risk that buying shares today leads to losses for investors. The situation regarding coronavirus may worsen over the coming weeks. And this could cause investor sentiment to deteriorate and share prices to decline. It may mean the returns on cash and bonds are superior to equities over the near term.FTSE 100 reward prospectsHowever, investors who can take a long-term view of their portfolio may be far better off buying shares with £10k (or any other amount) today. The track record of the FTSE 100 highlights that it has delivered annualised total returns of around 8%. And that is even taking into account its recent decline. This is significantly higher than the returns of less risky assets such as cash and bonds over the same time period – especially since low interest rates could limit their prospects.Furthermore, the FTSE 100 could produce even higher returns for investors from its current level. Many of its members’ share prices have fallen sharply and so appear to offer wide margins of safety. In some cases, those falls may have been overdone when you consider firms’ financial strength and strong competitive positions. As such, investors buying shares today could fulfil the popular strategy of buying low and selling high in the long run.ISA opportunitiesBut how to buy FTSE 100 shares? Well, Stocks and Shares ISAs offer a low-cost means of accessing a tax-efficient product. And the returns available to long-term investors could be significant.Certainly, buying FTSE 100 when there is a very real risk of paper losses being incurred in the short run may dissuade some investors from focusing their capital on equities at the present time. But on a long-term basis, cheap FTSE 100 shares that form part of a diverse portfolio could deliver significantly greater returns than other assets. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Peter Stephens | Sunday, 10th May, 2020 | More on: ^FTSE Enter Your Email Addresscenter_img “This Stock Could Be Like Buying Amazon in 1997” Have £10k to invest today? I’d buy cheap FTSE 100 shares in an ISA in this stock market crash Image source: Getty Images. 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. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img read more