As the ftse 100 reaches a historical maximum, it is now worth it … £ 10k inverted 1 year ago …

He Ftse 100 The index of leading companies contains some of the main names in British businesses, such as Shell and Uneilever.

That might not seem like a ticket for growth. After all, mature companies often find it more difficult to grow their business than smaller and agile advent.

In fact, however, they have been an excellent 12 months for the index.

Strong price growth

It has repeatedly reached a new historical maximum in recent months, including a new peak yesterday (March 3).

So what would an investor be now if I had invested £ 10k in the FTSE 100 a year ago?

It has risen 14.9% during that period. So, an investment of £ 10k should now be worth around £ 11,490. Not bad!

3.4% dividend yield of the main Blue-Chip actions

The index also produces approximately 3.4% at the time.

If someone had bought a year ago at the lowest price, the yield would be consequently. Then, now they would be yielding somewhere in the region of 3.9%.

Then, during the past year, that would have joined about £ 400 of dividends in a £ 10k investment.

Taken together, £ 10k inverted a year ago would now be worth almost 11,900.

Here is a way to invest in the FTSE 100

Buying shares in 100 different companies could take a long time and require significant capital, much less incurring many commercial rates.

That explains why many investors buy shares in funds that track the FTSE 100 index.

There are many options available and some have more attractive cost structures than others, so you can pay an investigation and compare the options.

Here's why I'm not buying a ftse 100 tracker at this time

Personally, I have no such actions and I currently have no plans to do it.

What works for different investors varies according to their own circumstances, objectives and focus. Instead of investing in a tracker fund, I prefer to buy individual shares.

For example, a FTSE 100 action that I have been buying is JD Sports (LSE: JD).

During the past year, £ 10k invested in the retailer would have reduced to less than £ 6,700 even including dividends, far from the general performance of FTSE 100, unfortunately.

But I have seen that the price of shares falls as a purchase opportunity for my portfolio.

I prefer to buy individual actions to an index, since it means that I can put my money in what I think they are excellent businesses, not only that they are the index. JD Sports has issued some gains warnings during the past year, but I still see it as a big business.

Because?

It has a large customer base that has shown to be willing to disburse expensive sports. The company includes its target customers, has a strong brand and an expansion plan that means that it not only has a global reach, but is ready to continue growing.

The price drop points to some of the risks, such as a weak economy that harms consumer spending and the store's ownership expansion program that eats short -term profits.

However, as a long -term investor, I think the current price is well below what I hope JD Sports Valga in the future. That is why I have been buying the shares.