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Two Key Factors in Thematic Investment

Index development has always played an important role in gaining out of investment made for short and long term perspectives. People have always analysed the importance of index maintenance also. Considering the popularity of dividend index and how people get lured by there we are here with another investment platform, the thematic investment. In particular, we will highlight here the Two Key Factors in Thematic Investment that you must have in mind. Visibility and persistence If at all you wish to determine the benefits of an investment in the thematic fund, then it is important for you to consider two key factors. It is these two factors that we are talking about which will help you to assess the strength of thematic investment. These two factors are namely, visibility as well as persistence. They former here might appear to be counterintuitive because as soon as the investors witness the evidence of the theme playing-out, a larger proportion of the enthusiasm that it has

Comparison Between Thematic Investing and Smart Beta

The index company provides you knowledge about all the major investment platforms. One of the most conspicuous trends in today’s era of investment is increase in the popularity of thematic investing. Thematic investing makes use of the top down approach in addition to seeking to make long-term identification of the secular trends which have the probability to shape the world where we are living so as to be the major driving force behind the financial market that is yet to make a mark in times to come. Here we are with the highlights on Comparison between Thematic investing and Smart Beta. Comparison between Thematic Investing and Smart Beta Thematic strategies are known to share certain similarities with the smart beta strategies. To highlight one, both of these are known to materially alter the return profile of the traditional market cap weighted index. It is this that is highly and frequently criticised for being exposed in excess to the largest companies so as to back up

Challenges Faced by The Thematic Investment

Total Return Indices has been the major concern of the investors for quite a long time by now. People depend in the Custom Index to reap as much profits as they can. Besides, the role of Index Provider in investing in desired opportunities cannot be neglected. However, here we are with basic advice on thematic investment. One of the most attractive qualities that any sort of investment can possess is providing a unique as well as an alternative source of return to the investor. In this case the thematic fund offers not only the opportunity of the additional source of alpha, however at the same time it also offers the benefits of diversification, which is further known to ameliorate the risk-adjusted return of the portfolio. Here are the Challenges Faced by The Thematic Investment. Risks associated with thematic investment This is not to say that the thematic investing has no risks associated with it because this is not true. Considering the nature of thematic investment, the

Basic Know How About the Equity Index

Index services have played a prominent role since time immemorial. Be it the custom or the equity index you have also got the right information. As far as index calculations concerned the index provides give you an investment here also. Equity Index is simply a measurement of the section of the stock market. It is simply calculated by keeping in mind the prices of the selected stocks which is basically a tool that is employed by the investors as well as the financial managers so as to describe the market. Not only this, but it is also used to compare the return on the particular type of an investment. Here we will discuss the basic know how about the equity index. Criteria of Index The two major criteria of an index are the fact that these are investable as well as transparent. Firstly, you ought to keep in mind the fact that the method you employ for its construction need to be clear. There are many mutual as well as exchange-traded funds that attempt to "track" t