Index Development

People who are fond of and are most of the times indulged in making investments re aware about the importance of Index Maintenance . Blockchain Index has grabbed the attention of many in recent times. Mostly, people these days get attracted towards thematic investing; therefore we are going to discuss the Perks Of Opting For Thematic Investing here. Theme based investment Thematic investments do not share any common traits with either generic portfolios or the mutual funds as the latter two are over-diversified. On the contrary, thematic investments basically refer to the investments that are diversified in a narrow array of stocks suitable to the theme’s investment logic. These are known to even outperform the equity benchmark returns. One of the good things about such investments are that these are relatively independent and are not affected by the economic cycles. The underlying structural trends help the investors to benefit a lot in the long run in addition to this the in

Index Development plays a very important role in the investment market. There are diverse types of indices that ought to be calculated. One of the most common indices are the Artificial Intelligence Indices . Here we are going to restrict ourselves to the factors that affect the smart beta indices. There is a plethora of factors that have been observed to influence Smart Beta Indices over a period of time. These factors can be divided into equity factors and others. Here are the factors influencing Smart Beta ETFs. Equity factors There are a lot of factors that are known to affect the Smart Beta ETFs. To highlight a few are as following. Value and Small size are one of the major factors in Smart Beta ETFs. Other than these, low volatility, high (dividend) yield, quality, momentum and equal weight are also the important factors. Not to forget high beta, low beta, buyback and growth are some of the other factors. These are all basically the equity factors. Other factors Oth

Calculation agent is the one responsible to calculate the Custom Index . The way you are aware about the role that the Index Provider plays, similarly you need to be aware about the role of Index Calculation Agent also. In addition to this, you must also understand the situation of conflict of interest. Here we are going to discuss about the index calculation agent and conflict of interest. Average investor In case the investor is considered average then most probably he never gets an opportunity to interact with the calculation agent directly. This is because majority of derivatives accessible to the retail investors are basically standardized and the deal is basically in liquid in addition to being in the huge transparent markets. In such a case, publicly available market price is considered to be the base for finalizing the price. Calculating agent as seller When the derivatives under consideration get into the thinner markets or in case the nature of these transaction

Index Services play a very important role for those indulged in making investments in the market. Without Index Calculation it is hard to determine if making investment is worth of knot. To calculate Dividend Indices there is a calculation agent. Here we are going to discuss about the meaning and role of calculation agent. Meaning of Calculation Agent It is not that easy to understand the term calculation agent, the role and duties that are associated with the same. The term calculation agent refers to an individual or says an entity who is responsible to determine the value of the derivative. It is the duty of the calculation agent to calculate the value of the derivative or in other words the amount that each party owes. He also has the power to establish structured product price thereby acting as the guarantor as well as the issuer. In case the counterparty in this derivative transaction also acts as the broker-dealer, then they also get to behave like a calculation agent.