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. FTSE 100 The index of leading companies contains some of the best names in British business, for example Shell AND Unilever.
This may not seem like a development ticket. After all, mature companies are often more complex to develop their activities than smaller, Nimbler upstairs.
In fact, however, it was an excellent 12 months for the index.
Strong price boost
In recent months, he has reached a modern level of all time many times-in this modern peak yesterday (March 3).
So what would the investor sit now if he invested 10,000 pounds in FTSE 100 a year ago?
During this period, it increased by 14.9%. So an investment worth 10,000 pounds should now be worth about 11,490 pounds. Not bad!
3.4% dividend performance from leading blue actions
The index currently also gives about 3.4%.
If someone bought a year ago at a lower price, the efficiency would be higher. So they would now bring 3.9%somewhere in the region.
So over the past year it would make almost 400 pounds of dividends from an investment of 10,000 pounds.
To sum up, 10,000 pounds invested a year ago will now be worth almost 11,900 pounds.
Here is one way to invest in FTSE 100
Buying shares in 100 different companies can be time consuming, and also require significant capital, not to mention incurring many trade fees.
This explains why many investors buy shares in funds that follow the FTSE 100 index.
There are many options available, and some have more attractive cost structures than others, so you can pay for testing and compare the elections.
Here’s why I’m not buying a FTSE 100 tracker now
Personally, I do not have such actions and currently I have no plans.
What works for different investors varies depending on their circumstances, goals and approach. Instead of investing in a tracking fund, I prefer to buy individual shares.
For example, one FTSE 100 action I bought JD Sport (LSE: JD).
Over the past year, 10,000 pounds invested in a retailer would decrease to below 6,700 pounds, even in this dividends – away from the overall FTSE 100 performance, unfortunately.
But I saw that the price of the shares fell as a possibility of buying for my portfolio.
I prefer to buy individual shares for the index, because it means that I can put money into what I think are great companies, not only all that introduce an index. Over the past year, JD Sports has spent several profit warnings, but I still consider it a great business.
Why?
It has a immense customer base, which has proved to be prone to high-priced sportswear. The company understands its target customers well, has a robust brand, but a plan of expansion, which means not only global range, but is to develop.
The price drop indicates some risks, such as a penniless economy that hurts consumer expenditure and real estate expansion program, eating low -term profits.
As a long -term investor, however, I think that the current price is well below what I expect that JD Sports will be worth in the future. That’s why I was buying shares.