For me, Nortel would have been the reason why I wouldn't index. Nortel at one point was +30% of the index?
But for the most part, it should be fine over the long term.
I do a hybrid index and stock picking. I am about 30% index, and 70% individual stock picking. Other than some bad trades, (eg. HCG) I've done very well.
Sask Pension Plan Upto $6000/yr in Credit Card spending on RRSP contributions