Should I invest in UK or global funds?
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In short: Most diversified portfolios include global funds because the UK is only about 4% of world stock-market value. A global index fund reduces country-specific risk; some UK exposure helps if you will spend pounds and care about home-market familiarity.
Content updated:
UK-heavy portfolios missed some US tech growth in recent years but avoided full exposure to sterling weakness on overseas assets.
A single global all-world index fund is the simplest diversified equity holding for many ISA and pension investors.
See global vs UK weightings in our index funds guide and platform chooser.
Primary source: moneyhelper.org.uk/en/savings/investing
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