Features of The Custom Index

There are several Index Company that are found operational across the globe. Some are popular among people while others are gaining the grounds. All of these make available the Index Provider that helps you at various instances. To know which one is the best for you, you need to get an insight into the indices. For this it becomes important to know about its features. Here are the features of the Custom Index.

Flexibility to customize the existing as well as create the new indices

By making use of the specific and the unique proprietary content sets, you get an opportunity to be able to create indices. These indices are not only competitive but at the same time these are highly innovative. These are far better in comparison to others.

The ever ready to help teams are functioning

There are teams ready to give you clarity about the index creating methods. These teams are always available to allow the validation of the proposed index methods. Here you get the independence to access the third-party approval for methodologies of the custom index.

The services are available 24*7

The actions in the market are continuously taking place. These are to be instantly identified so as to be in the win -win situation. Here the movements of the market as well as the changes that may have an impact on the custom indices are identified quickly and then implemented as well as delivered to the clients.

The platform is very resilient

Here you get the platform that is well designed to suit your needs. You can easily calculate the indices that hold a great value.  Some of these in real time are most relied upon by the world.

Quick and steady distribution of custom indices across the globe

The services are inclusive of the distribution of the custom indices through the industry standard feeds, the desktop networks, the FTP sites as well as the APIs.

All in all, these are the basic features of the Custom Index. Once you know these it will become much more easy for you to gain the maximum out of the same.

Source : https://thematicindex.quora.com/Features-of-The-Custom-Index

An insight into Index Maintenance

Index Maintenance is concerned with the eventual goal of providing the best to the investor. For this an investor must pay attention towards the Index Development. Prior to knowing this, in insight into other things is also important. One such thing is the Index Calculation that even a layman can do with the help of simple formulas that are available. Here in this article we will give you an insight into Index Maintenance. We will also highlight points about the other two aspects that you must know.

Index Development division

The task of the team that is concerned with the Index Development division is to create a unique index concept. This they do in-house via identifying the key market trends as well as opportunities. They conduct the relevant research and then develop the indices for the specific clients. This they do only on the request by the clients. They go in for including the back testing as well as the optimization of not only active but also the passive strategies. Also, the have the task to provide the licenses indices to the clients. These must have the garnered accolades in press for the unique composition besides unique design as well as positioning. The indices must include the financial instruments include Exchange Traded Products and the Passively Managed Index Funds. These also include the Mutual Funds, Structured Products and all other Index-linked Financial Assets

Index Calculation

When it comes to the Index Calculation division service, the services they include are many. To begin, they go in for the independent index back testing. They ensure end of day and real time index calculation. Index maintenance as well as administration, that includes the development of a method guide for the corporate action treatment in addition to rebalancing/reconstitution is necessary. Custom-built websites and act sheets are a necessity besides the other supporting index documentation. Public dissemination of the index data on exchanges in addition to adding data to vendors is vital.

All in all, having a thorough knowledge of the same can help you gain a lot out of the investment that you undertake.

Source : http://thematicindex.page.tl/An-insight-into-Index-Maintenance.htm

Steps to Calculate Total Return Indices

Steps to Calculate Total Return Indices

If you are fond of undertaking diverse investment then you need to pay more attention towards the Total Return Indices. Dividend Index is one important parameter in the same. Besides, knowing the Smart Beta, you need to know what you take home with each investment. Three important parameters are the total return of an index, the total dividends paid as well as that reinvested. Here we will know the steps to calculate Total Return Indices. The total return index actually reflects the entire benefit of holding the constituent of an index in a given time.  This implies reinvesting the dividends into the index by simply adding them, each period to the changes in price of index portfolio.

Adding dividends expressed in points

Here you need to know a common denominator.  You simply need to divide the dividends paid over the period by the same divisor that you have used in order to calculate the index.  This provides you with the dividends paid out per index point. Use the following equation. This equation consists of two parameters that are really important in calculating the same.

With this you have completed the initial step and now you can head towards the next step that is easy to approach. Now adjust the price return index value of the day by making use of the below given formula. It is the common point of the dividends as well as the index price change

.

Now apply this adjustment to total return index series. This will provide you the entire dividend payments. You now have to multiply it with previous day’s total return index level.

All in all, this is the basic insight into calculating the total return index. Having a thorough knowledge of the same will provide you a great help in the times to come. The Total Return is very powerful and should not be underestimated. You should never confuse the Price return indices” with the “price-weighted indices.” The two are very different. Also, you need to know that the components are given weights depending on the level of their individual price. 

Source : https://sites.google.com/site/thematicindex/steps-to-calculate-total-return-indices

Insight into The Thematic Investing

Investing of funds has gained momentum since people have become aware. There are these Index Services that provide you he best investment opportunities. Be it the Equity Index or any other, you need to have a thorough knowledge of the same. Here we will focus on the Thematic Investing. Only if you have the thorough knowledge of the same will you be able to undertake proper investment. Here is a brief insight into the Thematic Investing.

Understanding Thematic Investing

Thematic Investing is simply a way of investing by considering the future. It refers to investing in the stock markets. Here you can look for the greater opportunities or you can invest in the ideas that you prefer. You can also go in for the current trends. The last approach without requiring to go in for any sort of fundamental and technical research in details on the individual stocks. Many people have the constraint of both time as well as the expertise, because of which despite having the appropriate investment ideas they lack effective equity portfolios. In such a case the Thematic Investing comes into action. Here you can invest in around 100 different and unique themes that are specialized. This allows the concentrated exposure relevant to your thought process.

Powerful Portfolio Structure

Thematic Investing provides you a platform that helps you in effective investment with you having to utilize only couple of minutes. In the constantly altering business environment the ready to go themes provides you an edge over others to excel in what you do. Thematic Investing basically provides the powerful portfolio structure having compact themes giving you a concentrated exposure. In contrast to the mutual funds, diversification here is limited as well as optimal.

All in all, you need to know the Thematic Investing in brief. This will help you to do what is best for you in particular. You need to know that one common scenario of investing in not suitable for all in general. There needs to be, thus, umpteen themes that might prove beneficial for you in the times to come. This provides you an opportunity to leverage your ideas.