A £10,000 investment in the FTSE 100 at the start of 2026 would already be worth around £10,500, reflecting a 5% gain in just a few months.
That figure does not yet account for dividends, which add a further layer of return for investors holding FTSE 100 tracker funds or individual shares.
The index currently yields 3%, meaning a £10,000 investment would generate approximately £300 per year in passive income on top of any capital growth.
Looking further back, the FTSE 100 has delivered even stronger returns, rising by 50% over the past five years, a record that will reassure long-term investors.
Many investors choose to gain exposure to the index through FTSE 100 tracker funds, which mirror its performance without requiring investors to build their own 100-share portfolio.
Some of those trackers pay out dividends directly to investors, while others automatically reinvest them to compound returns over time.
Pricing across tracker products has become highly competitive, making it worthwhile to compare available options carefully before committing to a specific fund.
Individual share-picking remains an alternative approach, with some investors attempting to identify the stronger performers within the FTSE 100 and outperform the broader index.
JD Sports Fashion (LSE: JD) is one example where that strategy has proven difficult, with the sportswear retailer rising less than 1% so far in 2026, well behind the index.
The longer-term picture for JD Sports is considerably worse, with the stock down 51% over five years while the FTSE 100 gained 50% across the same period.
Heavy spending on expansion has failed to translate into improved profitability, a persistent risk that continues to weigh on investor sentiment toward the business.
There is also a broader economic concern, as demand for expensive branded trainers may weaken if consumers face sustained financial pressure in a slow-growth environment.
Despite those headwinds, JD Sports remains solidly profitable, carries a strong brand identity, and has cemented a significant global retail presence through its expansion strategy.
Christopher Ruane, who owns shares in JD Sports Fashion, has stated he will continue to hold the stock in his portfolio despite its underperformance against the index.