The difference between FTSE 100, 250 and 350

Many individuals want to invest their money and put it into shares but have no idea where to start. The world of the stock market can seem increasingly confusing and an overall daunting experience. However, with some guidance on FTSE 350 – you will be ready to make the first move with your money.

Due to interest rates previously being extremely slow many of us have decided to keep our money in savings accounts – but what can we do with our money in order to make a good return on investment?

The world of stock markets can be a complicated place so; here is all the information you need.

So, what is the difference between FTSE 100, 250 and 350?

The first thing you need to know about FTSE 100 is it is the largest stock market currently in the UK. It was first set up by London Stock Exchange and the Financial Times back in 1984 and has now become the primary indication of how well UK businesses are doing in the current economic climate.

The FTSE 100 is made up of the top 100 blue chip companies currently in the UK. This works to inform you of whom the top 100 businesses in the UK are and where your money is safe to invest. The amount of money you will win or lose will depend on your chosen company’s performance. This is updated every 15 seconds – representing the fast pace nature of the UK stock exchange.

However, if the top 100 companies do not appeal to you – you may be more interested in the FTSE 250 or FTSE 350.

FTSE represents the UK’s next 250 mid capitalised blue chip companies. The FTSE 250 represents around 15% of the UK’s business market. Your choice to invest in the FTSE 100 or 250 will largely depend on your preference for large companies or smaller ones.

In order to make the right decision for you, it is important to weigh up all the risks involved. On paper – the larger companies will make you a great deal more money than the smaller ones but this will depend on the company in question and their financial situation.

However, if you feel you do not have the knowledge to make a safe decision – the FTSE 350 will be the answer for you. This comprises companies from both the FTSE 100 and 250. Comparatively, you can also choose from the FTSE All-Share Index which is made up of 2000 businesses based in the UK which covers around 99% of the British business sector.

There are many options available when it comes to investing your money and there are lots of organisations in the UK who are more than happy to guide you through your decision. Organisations such as CSS can help you decide whether to put all your money in one place or to split it between businesses.

Once you have a little more experience in stock market, you won’t find it such an intimidating place and will be ready and rearing to go in the future.