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Trying to construct a life-changing second revenue? For me, the easiest way to chase a powerful and sustained revenue — and one which requires significantly much less effort than hottest facet hustles — is to spend money on the inventory market.
Final yr, the FTSE 100 delivered an unlimited 25% whole return to traders. For the S&P 500 index of US shares, the determine was 18%. These shopping for shares at the beginning of 2025 may have supercharged their portfolios, then, boosting their possibilities of ultimately having fun with a big passive revenue.
Returns have been bigger than common, certain. However even at typical charges, a small funding can generate appreciable wealth over time. The FTSE All-World Index of large- and mid-cap shares has delivered a mean annual return of roughly 12% during the last 5 years.
Right here’s how investing simply £100 in world shares may ultimately produce a £23,455 second revenue with minimal effort.
Producing wealth
One of many easiest methods to spend money on shares is with an index tracker fund. They permit people to personal a slice of many various firms, spreading danger and offering publicity to a broad collection of progress and revenue alternatives. And all at comparatively little price, too.
The Vanguard FTSE All-World ETF, as an example, tracks the efficiency of three,657 shares throughout areas and industries. And it has an ongoing cost of simply 0.19%. If it may well proceed delivering the 12% annual return of current years, a £100 month-to-month funding over 30 years will ultimately flip into £335,074.
If then invested in 7%-yielding dividend shares, a portfolio of this measurement would generate a £23,455 passive revenue a yr.
Shopping for single shares
Moderately than gaining broad inventory market publicity with a fund, traders may select to take a position straight in firms. This requires much more effort than merely sticking your money in an index tracker. Nonetheless, it may well additionally result in much better outcomes.
I feel a portfolio of 15-20 shares presents glorious diversification to unfold danger and purpose for large returns. Video games Workshop (LSE:GAW) is likely one of the FTSE 100’s best progress shares I’ve purchased for my very own portfolio.
Because of its main function in a quickly rising market, the tabletop gaming specialist continues to take pleasure in booming earnings even because the broader retail sector struggles. Final yr it delivered a complete return of 47%, smashing the broader FTSE index’s efficiency.
Additional value features in 2026 imply the typical annual return during the last decade is 45%. For those who’d drip fed £100 every month into Video games Workshop shares since then, you’d now be sitting on a cool £218,409 (assuming dividends have been reinvested).
Can Video games Workshop hold rising?
Previous efficiency isn’t at all times a dependable information to future returns for any share. Within the case of Video games Workshop, returns could possibly be impacted by rising competitors that dampens gross sales and margins. It might additionally face rising price pressures (together with tariff-related bills).
Nonetheless, I’m assured the Warhammer producer can hold outperforming. The fantasy gaming market has appreciable scope for progress, and Video games Workshop is increasing to capitalise on this. Media offers just like the one with Amazon to create movie, TV, and video video games content material may also supercharge licensing revenues and increase gross sales of its miniatures and boxed video games.
