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Investing in UK shares with the largest market capitalisations is a popular wealth-building tactic in Britain. These businesses have historically been quite stable. And that’s proven to be quite a handy advantage during all the recent inflation-induced volatility that’s plagued other areas of the stock market.
So let’s take a look at how much money investors have been making since 2020.
Starting with the FTSE 100
Let’s begin by looking at passive large-cap index fund investors. A quick glance at a share price chart reveals the FTSE 100‘s up by around 45% over the last five years. But factoring in the extra juicy dividends of these enterprises, the total return jumps to 80% – almost double.
On an annualised basis, that translates to just shy of 12.5% – enough to turn a £10,000 initial investment into £17,980. This achievement becomes even more impressive comparing…
