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Yes, as a rule an index tracker will almost always beat active investment by a hedge fund over the long-term. There's a famous bet on the matter:
As for the 250, I think there's still some room for growth in the UK internal market; not least as we're doing rather well with Covid compared to Europe and got Brexit sorted which had held down UK investment (FTSE100 is larger more international companies). I would still recommend spreading your bets though, common wisdom is actually to do one of two things:
1. Use a global tracker but I'm more inclined toward developed economies at the moment and I don't invest in dictatorships.
2. A US tracker or two is recommended but from experience you tend to just have general US on offer - you can see from the picture that the US has been the second best tracker which is about to overtake the FTSE250 and, let's be honest, the US is always going to be a better bet when it comes to the recovery. The economy is also sufficiently large and integral that you can get away with only investing in the US.
I like to have a foot in Japan because it can at times be counter-cyclical which stops some blood-red days but it's not a growth economy so you're just having peace of mind. Also You really can take a bigger risk with your cash, at least until the third quarter when everyone expects to see SHTF as governments realise they have no money and no reason to keep the life support on the economy.
Yes, at a minimum your tax free amount but this can be a solid 90% of your portfolio (diversified across a number of indices) with your 10% on get-rich-quick bullshit. If indices collapse then we've all got far bigger things to worry about and you can now get that house with some mere judicious swings with a cricket bat onto someone's melon.