A More Certain And Predictable Approach To Investment

Would you like to spend less time worrying about your investments? With Index Wealth Management we’ll help you to change the way you think about investing and the way the financial markets work, so you can enjoy life. With a planned and managed approach, you will know with 95% certainty how your investments will perform. Leaving you free to concentrate on what matters most, your lifestyle, without the burden of financial decisions.

Don’t Predict

You might want to believe in gurus. That market timing, stock selection and active management add value. That smart investing is about selecting funds or investment managers that can outperform others.

But this means speculation - making a judgment and only profiting if it proves correct. Speculating about the future is risky. The future is uncertain and investment managers can't make promises about your stock prices or personal performance. So basing your portfolio choices on promises that can't be kept may not actually be that smart.

There's simply no credible evidence to support the idea that active management enhances your investment results. In fact, the overwhelming evidence is that neither individual stock selection, nor market timing strategies add sufficient value for you consistently enough to outweigh their cost to you.

You need an investment strategy that puts you in control. Modern portfolio theory, based on Nobel Prize winning research, demonstrated that the most prudent approach to minimising risk and maximising the probability of achieving the average expected index return is to hold the entire stock. This approach puts the key drivers of your investment success within your control. Markets work and risk and return are related. Intelligent asset allocation determines the vast majority of investment return. Our approach helps you to set strategic asset allocations based on your risk profile, without the need to predict markets.


Diversifying your investments reduces uncertainty and therefore reduces your risk. By building your portfolio with asset classes that don't move together, you can significantly reduce its overall volatility. This way, your prospects for a greater compound rate of return over time are improved, without the distractions of the noise of the day.

Global diversification via international stocks reduces your risk and increases the expected return of your portfolio. Combining domestic and foreign stocks is a powerfully advantageous investment strategy, allowing you to participate in the growth of the whole global economy.

Invest in Asset Classes

Asset class funds deliver you the investment results of a group of shares with similar risk and expected return characteristics. We’ll help you to use asset class funds as basic building blocks to create efficient portfolios for you and to achieve dissimilar price movement diversification.

As asset classes are usually only available to institutional investors, such as corporate pension funds, they can be hard for you to get hold of. Here at Index Wealth Management we’re one of only a handful of fee-only registered investment advisors in the UK able to trade in these funds. Giving you access to what would otherwise be unavailable to you. Other benefits for you include low operating expenses, no initial charges, no back end charges, no marketing costs and a very low total expense ratio which is typically less than 0.5%. They also have low annual turnover, typically less than 25% - a good thing since high turnover generally means poor performance. Low turnover also helps to keep your trading costs low.

Be Efficient

Efficient Market theory says that it is nearly impossible for you to capture returns in excess of the market return, without taking greater than market levels of risk. To be efficient, you need to understand the relationship between risk, return, time and correlation.

You can then construct a portfolio that is most suited to your risk tolerance and objectives. Using a program which has data on asset classes extending back to 1926, we’ll help you to build a portfolio with known risk and return characteristics.

We then back-test this to show you what would have occurred had you owned those funds during times of market downturns, to ensure that you fully understand the risk of owning that specific portfolio.

To keep things on track we rebalance the holdings back to par when your agreed tolerances are exceeded. Your portfolio is analysed quarterly to determine whether rebalancing is necessary - maintaining your chosen level of risk and taking advantage of price changes, by automatically buying low and selling high.


By using passive index funds to deliver you returns on underlying asset classes, you don't incur the risks of manager underperformance or style drift. By accepting market rates of return, keeping costs low, maintaining discipline and diversification, you will receive a successful investment experience.

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  • Chartered Institute For Securities & Investment
  • Financial Planners Chartered