What’s behind the index action?
Why all this activity in a product space often referred to as “passive” investing? First, cost is king for many investors. Index funds can keep your fees to a minimum by strategically selecting indices to track and doing just that – no fancy finance.
Second, the simplicity is attractive, too. Most investors aren’t following markets 24/7. There just isn’t time for everyone to stay on top of the complexities that some investing products include. Index funds keep it simple. This straightforwardness is an antidote to the heightened chaos of today’s world.
However – and it’s a big however – none of this suggests returns won’t make the grade. In fact, index funds frequently beat the returns of actively managed funds. Research just published by Morningstar shows that this has been a frequent occurrence over the past year. Of the 3 200 active funds in their analysis, only one-third outperformed their passive peers for the 12 months to June 2025.
So, while index funds, such as our exchange-traded funds (ETFs) and unit trusts, are no-frills investing products, they pack a punch in any portfolio. Amid tariff wars, geopolitical tensions, and the rapid pace of change that technology is causing, low costs, high simplicity, and the ability to generate target returns are driving investors increasingly to index-tracking products.
From theory to action
How should all this action impact investment decisions? As our Insights article below suggests, keep calm and carry on investing. Index funds are designed to accrue their greatest benefits over time, quietly working for you in the background. In other words, have a plan and stick to it.
Speak to your financial advisor about the ways 1nvest index funds can add value to your portfolio.
You reap what you ignore
We spend plenty of time finding what to focus our attention on. Sometimes we need to pause for an attention audit. There is much to be gained from a purposeful approach to ignoring what doesn’t help you and what sometimes leads investors astray.
Keep calm and carry on investing
Investor anxiety is at a five-year high, and the question is: what should you do? Our executive director, Ryan Basdeo, explains ways to cushion your portfolio against market shocks.
Beat the bias
Try as we might to be unemotional investors, we are all susceptible to an array of biases. These can lead us to poor investing decisions – unless we know how to beat the bias. Shalia Naidoo, Head of Behavioural Science and Innovation at Standard Bank Group, explains.
Is it platinum’s time to glitter?
Collective Investment Schemes (CIS) are generally medium- to long-term investments. The value of participatory interests may go down as well as up. Past performance is not necessarily a guide to future performance. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and maximum commissions is available on request from the manager. The manager does not provide any guarantee with respect to the capital or the return of a CIS portfolio. These portfolios are third-party-named incubator portfolios. The manager retains full legal responsibility for these portfolios.
1nvest Fund Managers (Pty) Ltd is an authorised financial services provider (FSP), FSP No. 49955, under the Financial Advisory and Intermediary Services Act (FAIS), Act No. 37 of 2002. The manager of the Schemes is STANLIB Collective Investments (RF) Pty Ltd and registered in terms of CISCA. For the basis and information on awards and rankings, please contact [email protected].
