How I’d invest £3k in UK shares in a Stocks and Shares ISA right now

first_img FREE REPORT: Why this £5 stock could be set to surge Peter Stephens | Monday, 1st February, 2021 Enter Your Email Address See all posts by Peter Stephens Investing money in UK shares in a Stocks and Shares ISA could be a profitable long-term move. After all, the stock market has produced annualised total returns in the high-single-digits over recent decades.Of course, there are risks ahead from factors such as a weak economic outlook and changing investor sentiment following the recent stock market recovery. However, by focusing an investment of £3k, or any other amount, on a diverse range of strong businesses, it may be possible to earn impressive returns in the coming years.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…Diversifying within a Stocks and Shares ISADiversification may not be the obvious place to start for some investors when buying UK shares in a Stocks and Shares ISA. However, risks are always relatively high in equity markets. Therefore, any company can experience poor financial performance that negatively impacts on its share price prospects.Due to the introduction of regular investment services, it’s possible to build a diverse ISA portfolio without spending a vast amount of money on commission. For example, many share-dealing providers offer regular investment services (that can be used for one-off trades, if required) that reduce the cost of a trade to as little as £1.50. This makes them ideal for investors who have a limited amount of capital, but for whom diversifying across a wide range of companies remains a key consideration.Buying attractive UK sharesBuying UK shares with dominant market positions in a Stocks and Shares ISA may also help to reduce risk. They may be better placed to survive what could prove to be a tough period for the economy. For example, they may have a dominant market position that provides greater stability during a period of weaker sales growth.Furthermore, buying companies with competitive advantages may lead to higher returns in the long run. They may be able to deliver higher profit growth than sector peers as a result of larger margins and a more resilient financial performance. This may result in a rising share price, as investor sentiment could become more positive in response to a growing bottom line.Investing in growth opportunitiesOf course, buying UK shares that operate in industries with attractive growth prospects could have a positive impact on the value of a Stocks and Shares ISA. Identifying such industries is challenging due to present economic weakness. But some sectors look set to benefit from structural changes that may lead to growth opportunities for some businesses.For example, digital retail, healthcare and low-carbon assets could be growth areas over the long run. Through diversifying among sound businesses within those areas, as well as others, it may be possible to earn attractive returns over the long run. And that could lead to an increasing ISA portfolio value. Our 6 ‘Best Buys Now’ Shares Get the full details on this £5 stock now – while your report is free. Image source: Getty Images. Simply click 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. 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. 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. How I’d invest £3k in UK shares in a Stocks and Shares ISA right nowlast_img read more