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 has sparked debate about whether now is an opportune moment for new investors to enter the market.

The index, which tracks the performance of the 100 largest companies listed on the London Stock Exchange, demonstrated significant growth in 2025, rising by more than a fifth. This performance has been welcomed by investors and the Chancellor, who is keen to encourage a shift from cash savings to investments. However, the backdrop of persistent cost-of-living pressures and concerns about potential overvaluation of some stocks raises questions about the suitability of encouraging first-time investors at this juncture.

The FTSE 100's ascent reflects the potential for lucrative returns from long-term investments. Shareholders also have the opportunity to receive dividends, further enhancing the appeal of equity investments. The rise of the FTSE 100 is evidence of that.

While the FTSE 100's record high may signal positive momentum, potential investors should carefully consider their individual financial circumstances, risk tolerance, and investment goals. The value of investments can fluctuate, and there is no guarantee of returns.