Comparison of Various Investment Strategies

Investment plays an important role in one’s life. It helps in securing your future. You may wonder why one must invest. You might be trying to manage your budget and down payments. It may feel that investing is a burden. Investments ensure an individual’s financial security. Few strategies of investment are Thematic Investing and smart beta investment.  

THEMATIC INVESTING

Thematic Investing looks at the economy as a whole (top-down investment). It makes money out of opportunities created by various trends. Thematic investment depends on various factors like technological and geopolitical trends. It is not affected by geographic classifications. That includes the style or market capitalization. Its design is based on how long-term investments will be affected by trends. These trends can change existing business models. One can refer Thematic Index provided by various firms. Indices can provide a research approach and analysis. This can ease the process of investment for investors.

SMART BETA INVESTING

Smart Beta Indices are a set of strategies and no single investment strategy. It focuses on alternative index construction rules. It does not believe in traditional market-capitalization based indices. Smart Beta Indices focus on investment factors in market inefficiencies. They gain advantages of both passive and active investing strategies. One can refer to smart beta indices. They help in choosing an investment strategy according to goals.

COMPARISON BETWEEN SMART BETA AND THEMATIC INVESTING

Both investment strategies have a few things in common. For example, both gain profits by altering traditional market-cap indices. Smart beta strategies tilt the return profiles of the market cap index to a particular investment style. This results in growth. On the other hand, the Thematic Index focuses on altering the return profiles. It tilts the exposures to a particular concept or theme. This analysis can help in choosing the strategy of investment. One can invest to gain long term goals and returns.

Source:   https://indexcalculations.tumblr.com/post/619724433396056064/comparison-of-various-investment-strategies

Benefits of Indexation

Do you know the benefits of indexation? Indexation brings a lot of advantages to all the stakeholders. The advantages can be in the form of better management of the investment portfolio, etc. For availing the services of indexation, various Index Calculation needs to be done. These calculations are done by the Index Calculation Agent. There is an impelling need for these agents nowadays due to hefty investment amounts involved. There are various kinds of investments involved. They are Fixed- income investments, Term- investments, etc. 

Index Calculation Agents like S&P calculate and publish the level of the index. By taking the help of these, an efficient and high-quality solution is provided to the clients. The good thing is that the Index Calculations are done on a real-time basis. These agents also look for maintaining the level of the index and at the same administering them and finally data is available for public dissemination.

MORE ABOUT INDEX CALCULATIONS

The index calculations are mostly found by Current year sales/ previous year sales. By effectively using this ratio, you find or get the current financial position. Various kinds of weights are assigned to the values. The best part is that we are able to find the current market price or value. 

When we are using these index calculations, we can come to know about the variation in stocks. One can also track their investment portfolios on a regular basis. Mostly, the benefits of Indexation are available on a long term basis, which needs time.

UNDERSTANDING THEMATIC INVESTING

Thematic Investing derives its name from something that is based on a theme. So, all the investments under it have a common theme. Within the theme, different investments can have a different nature. Basically, in this investing, the macro-level trends are identified and on this basis only, the investments follow and perform. Thematic Investing is very wide, it’s spread is in all sectors. The only prerequisite is the high risk-taking ability of the investor.

Source:   https://indexcalculations.wordpress.com/2020/05/06/benefits-of-indexation/

A Guide To Indexed World

The indexed world works very dynamically. It includes various participants or players called Index Providers in it. There are various services provided like Index Services, which is independent and objective in nature. Under this, a number of services like design support, custom findings, fixed income services are covered.

These services cater to the needs of the index market. They also meet the regulatory changes and work as per the standards set for various kinds of investment. It also includes multi-asset calculations, OTC Valuations, etc. It is also focused to be cost-effective, wherein the additional cost of IT development is minimized so as to be effective. There is also a provision of extensive index data coverage and Index Maintenance.

Types of services included

• Fixed income services- for knowing the global bond markets with various bond indices.
• Structured product Indices- for knowing about mortgage-backed securities market, etc.
• Credit Default swap indices- covers various economies and finds their mortgage securities.
• Equity indices- covers various liquid equity indices.
• ESG indices- uses various indices for tracking carbon credits markets.

More about indexation

There are various Index Providers like S&P, BLOOMBERG, etc. They are very useful in trading. They calculate various stock and other indices. There work is to find the current indices and then they compare various prices to find any deviations. There work also include to forward the updated information to the general public. You can also contact them if you want some financial advice on various financial instruments or Index Services. There is a basket of securities, which you can choose and make your portfolio. One should try to make his portfolio as diversified as possible. Because in current times, if you go with only one kind of securities, then you are bound to suffer. So, it is advised to go for Index Maintenance services from time to time for doing away with the market fluctuations.

Source:   https://sites.google.com/site/indexcalculations/a-guide-to-indexed-world

Sorting Indices in The Game of Investments

Company investments have a whole lot more to look out for when investing in stocks or others. The process is different from investments operated by an individual. Company investments are more cryptic and need to have a secure and extremely detailed portfolio and other documents to keep up with. Therefore, due to the complexity of company investments, one should familiarise themselves with terms and aids that will help them understand and control the investment market. After all, you would want to reap the profitable benefits of investing funds in various fund creating asset opportunities.

Understanding the process of investing through indices

You must be familiar with the concept of an index in terms of finance, which essentially refers to the measurement of the change in a market dealing with securities.  Financial markets employ market indices that contain a speculative portfolio of securities that represent a specific market, or at least a part of it. There are quite a number of indices that you can use. The Blockchain Index was created as a tracker that would track the progress and presence of a company’s investment. The Blockchain Index is a helpful guide that will give you a detailed report of companies that are presently investing, using, building, or have products that will reap the benefits of blockchain technology. The Robotics Index helps to reduce the risk of loss by limiting the dependence on the bigger fish, the largest cap-players. It is structured to focus on the rapid development of robotics and automation sequencing in companies around the world. You could also spend time learning how Artificial Intelligence Indices are a whole game changer. 

Study the market

Before you rush off to invest your money, you should learn about the process. Assess the risks and benefits prior to investing. The market is very volatile, so you should be aware that you can lose your money as fast as you can make a profit off of it. Speak to agents and investment agencies, learn the market and its organic nature, read up on how Artificial Intelligence Indices and the Robotics Index are helping in this course of action, and start small and secure to earn back an assured profit.

The Best Way to Capitalise On Investments Without Losing

Investing is a wonderfully easy way to grow your money without having to lift a finger. You can opt for various modes of investments -- through bonds, deposit certificates, gold bars, stocks, etc. The basic principle is to increase your money over time, and once you reap the benefits, you can invest that money again to make another fortune. However, there are certain risks to investing funds, and if you are not careful about the market or keep a careful eye on what you’re investing, you may just end up losing all your money.

Maintaining indices - an important part of investments

There are some important terms that you must be aware of when you are investing your money to get profitable returns. If you want a solution custom made for your needs and investment strategies, you could read up on and explore the option of the Custom Index. A Custom Index will give you the opportunity to curate an entirely new index based on your specific needs and requirements or make changes to the already existing index. Building such an index is a very easy task, and you can build an index that will provide you with reliable data and calculations, as well as broad coverage. Another technique you could employ is Smart Beta Indices. These indices use advanced index strategy to profit from certain performing factors that will essentially outperform a benchmark index. 

Figure out your needs and requirements

The most important factor in creating an investment strategy is to focus on Index Development. These criteria will help you procure investing solutions according to your needs and requirements. Essentially, you need to select options that should measure what it intends to, and fulfils your requirement. Choose options like Smart Beta Indices or Index Development that will help in your investment plans.

Source:   https://indexcalculations-21.webself.net/blog/2020/05/02/the-best-way-to-capitalise-on-investments-without-losing

Thematic Investing and Thematic Index

Thematic Investing as the name suggests aims on identifying macro-level trends.  Understanding the trend is a major part of any business. Trends can be defined as a sudden or gradual shift in any situation. It may be under fashion, education or styling. Thematic Investing works in this part for your business. It works on those underlying investments that may provide benefits from the materialization of the macro-level trend.

How is thematic investing better than other forms of investing?

Unlike other forms of investing, thematic investing covers a good number of sectors and pick companies that are relevant to this sector and matches the theme. Areas covered by thematic investing.

There are some basic thematic investing areas, these areas include: 

Environmentalism and environmental technology

Gaming

Healthcare

Robotics and automation

Infrastructure 

Luxury brands and

Water distribution

What is the Thematic Index?

The representation of the performance of companies that are associated with any long-term trend or any kind of structural trends that investors are inclined towards in order to gain power or dominance in the market in the future is called Thematic Index. The Thematic Index offers an alternative framework for analyzing the opportunities that are available for investments. It identifies the emerging macroeconomic and geopolitical trend which is structural and transformative in nature. 

Keys to Megatrends

With the change in the trends of the world the investors demand to stay updated with the changing dynamics hence, it is necessary to carefully read and prepare the thematic index and learn about the thematic investment. Some of the key points that may help you create a megatrend or features that are must in megatrends are stay up to the point in thematic objectives: for example, if the thematic index is robotics then the objective of the index should be to study the performance of the benefits from the use of a robot by any company. Have a global coverage. Should be scalable and flexible.

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Different Types of Index

What is a Custom Index?

Before knowing further details on any topic let's first understand what Custom Index is. The Custom Index is a way of creating a non clustered index on a single index or on multiple or composite indexes, in an entity. It is beneficial in improving the performance of the querying process. The custom indexes calculate traditional market cap-weighted and alternatively weighted equity indexes. 

The Advantages of the Custom Index

It provides broad coverage to reflect a specific benchmark or product requirement transparency and a replicable index can be designed with more rigorous calculation. Data provided are reliable. Many companies that provide custom indexes have global support that provides a cross-functional Custom Index team. Most of the custom indexes calculated by the companies are automatic and depends on the production system. Hence, the data is true and reliable. 

The Custom Index can be used to avoid the misfit of the benchmark, by using an index that more accurately reflects your investment strategy. Social investment strategies gain a benchmark. You can manage your currency via a custom index.

What is Robotics Index?

The main definition can be explained by the objective of the Robotics Index. Basically, the Robotics Index aims to represent the benefit or the potential of the company through increased acceptance and adoption of robots.  Robotics Index includes companies which have high exposure to some technical or robotics-related activities namely:

Robots 

Artificial Intelligence

Automation

Industrial robots

Autonomous robots and many more.

What is the Development Index?

Different countries have different capita income. The Development Index is a statistic index of education and life expectancy as well as per capita income that are necessary to mark any country on with their rank in the four tiers of human development. The Development Index emphasis on people and their capability and makes them the prior criteria for assessing the development of any country.

Source:   https://indexcalculations.wordpress.com/2020/03/12/different-types-of-index/