The FTSE 100, the UK's leading share index, achieved a historic milestone, surpassing 10,000 points for the first time since its inception in 1984. This surge, occurring early in the new year, was welcomed by investors and the Chancellor, who has been advocating for a shift from cash savings to investments.

The index, which tracks the performance of the 100 largest companies listed on the London Stock Exchange, demonstrated significant growth, increasing by over 20% in 2025. This rise underscored the potential lucrativeness of long-term investments, as shareholders also benefit from dividends.

The FTSE 100's record high occurred amidst a backdrop of economic challenges for many individuals grappling with everyday costs. This situation raised questions about whether the index's success truly aligned with encouraging first-time investors, especially given concerns about potential overvaluation in some stocks.

Investing, facilitated by various apps and platforms, offers diverse avenues for individuals to allocate their capital. However, it is crucial to acknowledge the inherent volatility of investments, as their value can fluctuate. Investing £100 does not guarantee that the investment will retain its initial value over time.

Despite the risks, the FTSE 100's performance served as a testament to the potential rewards of long-term investment strategies. The future outlook for the index remains subject to various economic factors and market dynamics, requiring investors to exercise caution and conduct thorough research before making investment decisions.