What all investors should know about index investing

Index-linked investments are growing fast in popularity globally, and are increasing in size and complexity too. Today as many as 40% of US assets under management are index-linked.

An index is essentially an abstract, mathematical construct, created by index providers and stock exchanges to measure the performance of the market.

Index-linked funds closely track the investments within an index thereby mirroring its performance. They are popular with long-term investors who are happy with investment performance in line with the index and those who enjoy the significantly lower fees involved. They’re also not exposed to the risks associated with actively managed funds, which is attractive to cautious investors.

Equally, however, index-linked investors are not exposed to the rewards associated with actively managed funds that perform over and above the performance of the index. In this video Kingsley Williams, Indexation Chief Investment Officer at Old Mutual Investment Group’s Customised Solutions Boutique, explains why  blending actively managed and index-linked investment approaches is sensible, and how to go about choosing a fund that will work for you.

News24 spoke to Kingsley Williams on how to get the best of both worlds.

Find out more about index investing


Active investing, index investing, or both? How does an investor choose the best strategy to meet their investment needs? The good news is Old Mutual Investment Group has compiled a five-article educational series that discusses all the important factors an investor should consider. You can access the five articles here or download the full Index Investing Educational Series here.


If you want to invest in index funds, you can apply online with Old Mutual Unit Trusts or speak to your financial adviser about investing in an index fund. If you don’t have a financial adviser you enter your details here and one will contact you.

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