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What Is the FTSE 100 Index?
The FTSE 100 is the UK’s flagship large-cap equity benchmark, capturing the 100 largest, most liquid London Stock Exchange listings after adjusting for free float and investability. Maintained by FTSE Russell, it is market-cap weighted rather than price-weighted, so bigger companies influence performance more in proportion to their tradable value.
Eligibility screens cover liquidity, nationality, and free float standards; corporate actions are managed under FTSE Russell’s rulebook to keep continuity. The index is reviewed four times a year, with additions and deletions implemented after the review timetable. Because many members derive a majority of revenues outside the UK, the FTSE 100 often reflects global risk appetite, commodity trends, and sterling moves as much as domestic data.
Investors commonly reference both price and total-return versions, and track it through UCITS ETFs and derivatives. In portfolios, the FTSE 100 typically supplies dividend income and mega-cap stability, but exhibits sector tilts toward energy, financials, consumer staples, healthcare, and materials; technology is a smaller slice than in U.S. benchmarks.
Top Companies in the FTSE 100 Index
How to Invest in FTSE 100 from India?
Step 1: Choose Your Route
- The simplest method is via UCITS ETFs that track the FTSE 100, listed on the London Stock Exchange (LSE) and traded in GBP.
- Advanced investors may consider FTSE 100 futures and options for tactical exposure or hedging.
- Alternatively, look at India-based global allocation funds, but confirm if they truly track the FTSE 100.
Step 2: Open an Overseas Brokerage Account
- Select a brokerage that allows international trading access, particularly to the LSE.
- Ensure the broker complies with RBI’s Liberalised Remittance Scheme (LRS).
Step 3: Fund the Account under RBI’s LRS
- Under LRS, you can remit up to USD 250,000 per year.
- Transfer the funds from your Indian bank to the overseas brokerage account.
Step 4: Account for All Costs
- Calculate the full cost stack, including bank FX spread, transfer fees, TCS (Tax Collected at Source) on remittances, brokerage commissions, stamp duty (if applicable), and the ETF’s expense ratio.
Step 5: Understand Taxation
- Dividends and capital gains from FTSE 100 investments are taxable in India.
- Keep records of transactions for accurate tax filing.
Step 6: Factor in Currency Risk
- FTSE 100 ETFs are priced in GBP.
- GBP/INR fluctuations will impact your net returns, either amplifying or reducing them.
Step 7: Buy Your Chosen ETF or Derivative
- Place the order through your overseas broker.
- For ETFs, consider accumulation vs distribution share classes depending on whether you prefer reinvested dividends or cash payouts.
Step 8: Manage Position Sizing and Risk
- Keep your position modest relative to your portfolio.
- Rebalance periodically to align with your investment goals.
- Use derivatives only if you have experience with margin and risk management.
Step 9: Revisit Sector and Market Fit
- The FTSE 100 is tilted toward energy, financials, consumer staples, and healthcare.
- Make sure this sector mix fits your time horizon, risk appetite, and diversification strategy.
FTSE 100 Historical Performance Chart
Role of the FTSE 100 in the UK economy
The FTSE 100 index is the UK market’s shorthand for large-cap sentiment, but its economic role is subtler. Because many members earn most revenues overseas, the index is a barometer of global conditions filtered through sterling. When the pound weakens, exporters’ overseas earnings translate into higher GBP profits, often lifting the index; a stronger pound can have the opposite effect.
Domestically, the FTSE 100 index underpins pensions, insurance portfolios, and retail investment products, influencing household wealth effects and corporate funding costs. Dividend distributions from mega-caps matter for income funds and annuities, while share-price levels affect equity issuance, M&A terms, and executive incentive plans.
Sector composition means commodity prices, bank net-interest margins, and defensive cash-flow dynamics shape the cycle. Policymakers and corporates watch the FTSE index alongside gilt yields and the housing market to gauge financial conditions. However, it is not a proxy for the broader UK economy: small businesses and domestic mid-caps sit outside it, and real-time labour, housing, and services data often tell a different story. Used correctly, the FTSE 100 complements, rather than replaces, on-the-ground macro indicators.
FTSE 100 vs FTSE 250: Key Differences
| Feature | FTSE 100 | FTSE 250 |
|---|---|---|
Size & scope | 100 largest UK-listed free-float large caps | Next 250 after the FTSE 100 (mid-caps) |
Weighting | Free-float market-cap weighted | Free-float market-cap weighted |
Revenue mix | Heavily overseas, multinational | More UK-domestic exposure on average |
Sector tilt (typical) | Energy, financials, staples, healthcare, materials | Industrials, consumer, financials, real estate, healthcare |
Volatility & beta | Lower beta, more defensive in global shocks | Higher beta, more cyclical and UK-sensitive |
Income profile | Higher aggregate dividends, mature cash generators | Lower yield, more reinvestment and growth |
Liquidity & derivatives | Deep liquidity; active futures/options | Good liquidity; fewer derivative instruments |
Rebalance | Quarterly by FTSE Russell | Quarterly by FTSE Russell |
Common use | Core UK large-cap exposure and income | UK domestic growth and cyclical tilt |
FAQs
How many companies are in the FTSE 100 index?
The FTSE 100 captures the 100 largest eligible London Stock Exchange listings after adjusting for free float and investability, and it is maintained by FTSE Russell. It is reviewed quarterly – March, June, September, December – with changes implemented after the review timetable so the index remains liquid, tradable, and representative of the UK’s blue-chip universe. Additions and deletions follow published ground rules.
Which sectors dominate FTSE 100?
Sector weights shift with prices and membership, but the FTSE 100 typically skews toward energy, financials, consumer staples, healthcare, and materials, with smaller slices in industrials, utilities, telecoms, and technology. Because many members are multinationals, commodity prices and defensive cash-flow sectors often shape returns more than high-growth tech, distinguishing the index from U.S. benchmarks dominated by mega-cap technology. Weights evolve.
How often is FTSE 100 updated or rebalanced?
The FTSE index is reviewed quarterly – in March, June, September, and December – by FTSE Russell. Changes are announced and then implemented after market close on the effective date, taking effect at the next session. Between reviews, corporate actions are processed per the rulebook to preserve index continuity, investability, and free-float accuracy without distorting the level. Extraordinary events are handled case-by-case.
Which are the biggest companies in the FTSE 100 index?
The leaderboard changes with prices and corporate actions, but recent heavyweights typically include Shell, AstraZeneca, HSBC, Unilever, BP, Diageo, GSK, and RELX, alongside sizeable positions in consumer staples and energy. For precise rankings and weights, always consult the latest FTSE Russell constituent-weights file or your data terminal, as index composition and investability adjustments evolve over time. Rankings update after reviews.
How is the FTSE 100 index calculated?
It’s a free-float market-cap weighted index: each constituent’s weight reflects its investable market value (price × shares × free-float factor), normalised by a published divisor. Real-time values update as prices move, while periodic investability, corporate actions, and voting-rights screens ensure the basket remains liquid and tradable. The calculation and governance are documented in FTSE Russell’s UK Index Series ground rules.
What was the highest level the FTSE 100 index has ever reached?
Recent records were set in August 2025. The FTSE 100’s highest closing level was 9,321.40, and its intraday high reached 9,357.51 during the same period.
How can I track FTSE 100 live?
Use the London Stock Exchange index page, FTSE Russell’s analytics portal, or reputable data terminals and newswires for tick-by-tick updates and official factsheets. Retail investors can also follow live quotes inside broker apps; in India, quite a few platforms show international indices on their market-watch. Remember London trading runs 8:00–16:30 UK time, so IST updates appear during those hours. Adjust seasonally.
Are all FTSE 100 companies based only in the UK?
No. Constituents are UK-listed and classified to the UK index series, but many are multinational groups with operations and revenue bases worldwide. Some have primary listings in London and headquarters in other countries, or earn most sales overseas. What matters for inclusion is eligibility under the FTSE UK rulebook – free float, liquidity, and nationality assignment – not that activities are confined to the UK.
What currency is the FTSE 100 index traded in?
The FTSE index is calculated and quoted in pounds sterling (GBP), and FTSE 100 constituents trade in GBP on the London Stock Exchange. Some ETFs that track the index offer currency-hedged or non-hedged share classes and may be listed in other currencies, but the underlying benchmark is sterling-denominated, so INR-based investors experience an additional GBP/INR currency return unless they hedge.