You are probably right in general sense. Index funds are for

people who has very basic investment knowledge and experience. I believe most people can pass this infancy stage if they are willing to spend some time doing some home work and research. I have 20+ years of investment experience. I have tried invest in individual stocks as well, but the stress and time commitment was too much for me. I can play with stocks with a small amount of my family's asset for fun. But for the most part, I'm more comfortable with mutual funds. Selecting individual sector funds and international funds etc. does take some effort and risk tolerance, but the overall risk and reward ratio is very favorable for people who are willing to learn. It's not hard at all. Just need some determination and believe in yourself that you can do it.  And you can do it better than a lot of fee charging financial advisers.