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I'm in this game for the long haul:
STX40 10 years    15.92% + divs = 18.68% annualised
STXIND 10 years 23.55% + divs = 26.03% annualised

5 year numbers are 11% and 22%. There's too little data on the RAFI to compare longer term.

http://www.moneyweb.co.za/moneyweb-click-a-unit-trust/satrix-indi-portfolio?sn=2012+Detail
http://www.moneyweb.co.za/moneyweb-click-a-unit-trust/satrix-40-portfolio?sn=2012+Detail

You will want to keep your stocks for at least 3 years for tax sake. So here is a 3y chart. You can either pick 60% or 120%. Whichever suits your pocket.
I just cannot see the other indexes beating the Indi. Even the method used to pick the Rafi stocks should make it the best performer but it is not.
If one can use the Rafi stock picking method on the Indi stocks, you will have superior stocks.

So would it still be safe to just invest in just the Indi long term?Or is a mix of indexes recommended?I'll investing long term.

Also Orca,what do you mean by "You can either pick 60% or 120%"?

Im really also worried by the state of the economy long-term,causing investments to be worthless.

Is it perfectly safe invest in Rands at the moment?

The Indi has been the best performing ETF for many years beating most if not all fund managers and UT's.
A correction is overdue at this point but "when" is the question. Nobody knows, but it must happen soon. It should be a healthy 8 to 15% correction that will put the charts back to normal as they are overbought at this stage.
Now this correction must not be confused with a Bear Market. It will still be in a Bull Market with a correction of short term within the Bull Market.
Your last question about the safety of investing in Rands.
Sadly it is not. The violent and destructive strikes here are seen on foreign media. If we get downgraded one more notch due to this, we will be worse off. The ZAR will decline further and due to foreign countries policies, investments here MUST be withdrawn to protect their investments from declining.

 

I see the Indi has gone through R50 now and was thinking about putting an order in to buy at R47 do you think it will pull back anytime soon?

The Indi sector has gone up too high according to my brokers. The sector PE is 24x and this is not sustainable. A correction has been overdue for some time and any advances is due to trading and not investing.

So you still think there will be a 10-15%  correction?

No doubt yozzi. The S&P500, Indi sector, TOPI etc are trading too high above the 200 ma and the happiness of today is not helping. One can argue that this may be a new normal but how do you argue that the Indi is trading at a PE of 24x and the ALSI at +17x whereas the ALSI's long term average is 14x
Should the ALSI correct back to a PE of 14x from 17x then the mind boggles as to the percentage drop. Perhaps a year bear market?

So you still think there will be a 10-15%  correction?

Plenty are saying the market is due a correction, but they've been saying that for a long time now. Note that the correction would likely be market wide if it did occur, not just on the indi. Of course a correction is possible, but then again so is an economic boom. The p/e is often misleading. If there's growth coming up then the future p/e could normalise without a correction.

Since you're talking fairly long term at 3 to 5 years, I would imagine the market or indi in this case, is very likely going to give you a better return than any other asset class. The only sure thing I can say, is that if you stay in cash you will be guaranteed to lose as inflation will eat away at it. Property might beat inflation, but on average just matches it.

Plot two points separated by 5 years pretty much anywhere in the JSE's history, and you'll most likely not only see growth, but growth exceeding the inflation rate. Even buying just before the 2008 crash would have you ahead of inflation now 5 years later. And don't forget about those dividends, they're not shown on the graphs, so you need to add them in your head!