Why opt for index funds?

When you invest in an index fund, you are buying a share of an entire stock exchange index, for example the SMI. The aim of an index fund is for it to replicate an index identically. If the index goes up, so does the value of the index fund. In contrast to traditional investment funds, index funds are not actively managed funds, which try to outperform their relevant index by buying and selling securities. Over the long term, however, very few actively managed funds are able to outperform their benchmark index. And thanks to the low fees charged by index funds, investors benefit from higher returns over the long term.