The FTSE 100 turns 40 – what’s changed and what’s next?

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How much has the FTSE 100 changed in 40 years, what can we learn and what’s next?

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 5 January 2024

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

The FTSE 100 index turns 40 this year.

Launched in 1984 as an index of the top 100 UK companies, it quickly became the most popular way of measuring the health of the UK stock market. To celebrate four decades, we’re looking back at the highs and lows, what’s changed since 1984 and what could be next.

Remember, past performance isn’t a guide to the future. Investments fall as well as rise in value, so you could get back less than you put in.

This article isn’t personal advice. If you’re not sure what is suitable, ask for financial advice.

Since launching to the end of 2023, the FTSE 100 has grown by 673% (excluding dividends and charges).

The index has seen its fair share of ups and downs, but still produced an average annual return of 5.2%. Beating inflation across the same period.

There’s been a fair share of volatility across the years. If you’re a new investor in the FTSE