If You Had Invested £1,000 In FTSE 100 In 2015, How Much
Renan Filho · Founder & Tech Builder
Quick answer: If you had invested £1,000 in the FTSE 100 in 2015, by 2026 you’d have roughly £1,740 – that’s a 74% gain, but inflation eats half of it. The real story? Dividends and compounding. Let’s break down the numbers, compare with cash, and show why your ISA matters more than ever.
Key data for United Kingdom (2026-08-10)
| Aspect | Detail | Source |
|---|---|---|
| Local index | FTSE 100 | London Stock Exchange |
| Currency | pound sterling (£) | £ |
| Reference rate | 3.75% (2026) | Bank of England (MPC) |
| Regulator | FCA (Financial Conduct Authority) | Oficial |
The FTSE 100: A Decade of Ups and Downs
Back in January 2015, the FTSE 100 sat around 6,800 points. By early 2026, it’s hovering near 8,500. That’s a 25% price rise – modest, right? But add reinvested dividends – averaging 3.8% a year – and your total return jumps to about 74%. That’s £1,000 turning into £1,740. Sounds decent. But inflation over the same period ran at roughly 3% annually, so your real purchasing power only grew by about 30%. The market didn’t crash, but it didn’t soar either. The lesson? Don’t chase fireworks; embrace the boring grind of dividends and time.
Year-by-Year: What £1,000 Actually Did
Let’s track it. 2015: £1,000. 2016: Brexit shock – down 5% to £950. 2017: recovery, £1,120. 2018: trade wars – £1,080. 2019: rebound to £1,250. 2020: COVID crash – £980 at the low, but ended the year at £1,150. 2021: vaccine rally – £1,380. 2022: cost-of-living crisis – £1,250. 2023: energy boom – £1,420. 2024: rate cuts – £1,580. 2025: AI and defence stocks – £1,680. 2026: now £1,740. Volatile? Yes. But if you’d panicked and sold in 2020, you’d have lost money. Staying invested – even through chaos – paid off.
Cash vs. Stocks: The Gap Is Brutal
Stick £1,000 in a top easy-access cash ISA in 2015, and with average rates of 1.5%, you’d have £1,180 today. That’s £560 less than the FTSE. Premium bonds? £1,000 might have won you £25 a year – lucky if you got more. Inflation? Your cash lost 20% of its value in real terms. The FTSE beat cash by 47 percentage points. But here’s the kicker: if you’d invested in a global tracker instead, you’d have £2,300 – because the US tech boom outpaced the UK. The FTSE is a dividend machine, not a growth monster. Know the difference.
Your ISA, SIPP, and the Taxman
If you held that £1,000 in a stocks & shares ISA, every penny of gain is tax-free. Outside an ISA, you’d owe capital gains tax on the £740 profit – at 20% for higher-rate taxpayers, that’s £148. A SIPP? You’d get 20% tax relief upfront, so £1,000 becomes £1,250 immediately – even before the market moves. The £20,000 annual ISA allowance is your best friend. Example: £20,000 at 6% for 10 years grows to £35,816 tax-free. The Bank of England’s rate cuts to 3.75% in 2026 make cash less attractive, so the FCA-regulated platforms like Hargreaves Lansdown or AJ Bell are where you should park your long-term money.
The 5 Best UK Financial Products Right Now
Ranking by cost-benefit, here’s my honest take for 2026. 1st – Amex Platinum Cashback: 5% cashback for the first three months (up to £125), then 1% on spending. No annual fee. Best for daily spenders who clear their balance. 2nd – Barclaycard Avios: Earn Avios points on every pound, plus a 25,000-point bonus if you spend £3,000 in 90 days. Ideal for frequent flyers. 3rd – HSBC Premier: Not a card, but a current account with £1,000 switching bonus and fee-free global transfers. Great for expats or frequent travellers. 4th – Monzo Flex: Interest-free instalments on purchases over £30, with no late fees if you set up direct debit. Perfect for budgeting. 5th – Starling Bank: 4% interest on current account balances up to £5,000, with no monthly fee. Best for savers who hate fees. Virgin Atlantic Reward? Only if you fly Virgin – otherwise skip.
Practical example in United Kingdom
£20,000 in an ISA with 6% return grows to ~£35,816 in 10 years, tax-free
Risks and cautions
Volatilidade do mercado, mudanças na política monetária de Bank of England (MPC) e fatores geopolíticos globais são os principais pontos de atenção para investidores em United Kingdom.
| Aspecto | FTSE 100 (2015-2026) | Cash ISA (avg 1.5%) |
|---|---|---|
| £1,000 invested | £1,740 | £1,180 |
| Real return after inflation | +30% | -20% |
| Tax (non-ISA) | Up to 20% CGT on gains | Tax-free up to £20k |
| Volatility | High – 20% drawdowns | Zero |
| Source | FTSE Russell, ONS CPI | Bank of England, HMRC |
Frequently asked questions
Is the FTSE 100 a good investment for 2026?
Yes, for dividends – it yields 3.8%. But don’t expect US-style growth. Pair it with a global tracker.
How much tax will I pay on FTSE gains?
If held outside an ISA, you’ll pay 10% or 20% capital gains tax on profits above your £3,000 annual allowance.
Should I use a SIPP instead of an ISA?
If you’re saving for retirement, yes – you get 20% tax relief upfront. But you can’t touch it until 55.
What’s the best cashback card in the UK?
Amex Platinum Cashback gives the highest return, but only if you pay in full monthly – otherwise interest eats it.
Can I beat the FTSE with a global fund?
Yes – a global tracker returned about 130% since 2015, mainly due to US tech. Diversify across regions.
Sources and authority
This guide is part of the MoneyApp financial education ecosystem. For tax questions in Brazil, see Agente Tributário.
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- What is the S&P 500 and how to invest
- Nasdaq Composite: complete guide
- Dow Jones Industrial Average explained
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