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.

Source:   https://indexcalculations.tumblr.com/post/612452799226216448/thematic-investing-and-thematic-index

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/

Dividend and Smart Beta Indices

What is Smart Beta Indices?

Currency or money doesn't have the same value over time. They have to face rise and fall, and they are inversely proportional to the changes in the price level. This means with the rise in the price level, the value of money decreases. 

The index number is a technique that helps us measure different changes in a variable or any other of its characteristics concerning time. 

Lags in the Method

There are researches that State it to be a "not so good" a way to calculate the factors. This is because of the factor exposure that Smart Beta Indices provide varies greatly. Though, they are considered to be a good tool for gaining factor exposure. 

History of Smart Beta Indices

Smart Beta Indices were originally tossed by Harry Markowitz in his work on Modern Portfolio Theory. 

Index numbers are studies to observe the changes in the effects of such factors that can't be measured directly. 

What is Dividend Indices?

The to-date best method to espouse a dozen strategies for the generation of returns is the Dividend Indices. Hence depending upon the performance of the top 50 securities in the parent index, there are different dividend indices that are increased or maintained and ranked by their dividend yield. 

The measure of the best performing stock based on the dividend yield performance is known as the Dividend Indices. The content of indices can be any number of stocks, still, it is rarely above the count of 100.

Factors influencing stocks that are to be Chosen

There are different factors that influence the stocks to be chose 

Some of them are

Dividend per share

Dividend payout percentage rate and average daily trading volume. 

The main dividend indices are Dow Jones Us select dividend index

The S&P Global dividend opportunity index, that contains roughly above200 high yielding stocks 

S&P 500 dividend aristocrats index.

Source:   https://sites.google.com/site/indexcalculations/dividend-and-smart-beta-indices

Different Ways of Indexes

The term Index Maintenance is very important as well as essential to improve the database or to maintain the well being of the database. It is said by Brad McGehee that one step should be taken to enhance them or create indexes and also increase Index Maintenance. By using this maintenance is taken care along with the schedule to run. The process is been carried on by the use of the SQL server agent.

The indexes are also being maintained as well as performed well. Indexes can be rebuilt using certain syntax. The index that requires maintenance can be rebuilt and can be improved too. These rebuilds can be done via online as well as offline. These are also very useful.

Different Types of Indexes

The Index Provider has the work to calculate as well as distribute the stock and the indices. There are many rolls of an Index Provider. One of the major functions of them is that they help in classification and define the markets. The reason is that indices help in market representation. It also provides a benchmark for that sector or the market in the industry.

These providers have the capability to make money by licensing the indexes. This helps in investment firms and uses them to create financial products. These providers make a lot of money. They also make profits of more than 36%. There are providers that can also exchange their products that are to be traded.

There is a formula for Index Calculation. This calculation is very important for calculating indexes. Index Calculation is done by the Cost Inflation Index (CII). This calculation is increasing over the years. This is calculated to match the prices with the rate of inflation. This calculation varies and it may increase or decrease in different years. The data are calculated on the basis of base value and by utilising simple mathematics.

Essentials of Index for Everyone Else

The marketplace capitalization of each of the 30 groups comprising the index is first decided by way of multiplying the charge of their stocks with the variety of shares issued with the aid of that company. The free-float market capitalization of the Index calculation parts is then divided using a number referred to as the Index Divisor.

Index Services

Getting an independent and objective index operational service Access a full variety of unbiased and objective index operational offerings, including layout support, maintenance, custom calculations, and distribution of indices across fixed earnings instruments, currencies, equities, and commodities.

Dividend Indices

The Main dividend indices consist of the Dow Jones US Select Dividend Index (weighted using dividend yield); the S&P Global Dividends Opportunity Index (containing roughly one hundred high-yielding stocks); the FTSE All-World High Dividend Yield Index (based on forecast dividend yield ranking) and the S&P 500 Dividend Aristocrats Index

Thematic Index

In this Thematic Index, two objects are dealt with specially. For each geomagnetic index, one may locate the equivalent of a detailed desk of contents, wherein the main thoughts or troubles concerning the index are listed. Our Thematic Indexes replicate the performance of various wide investment themes. Thematic investing seeks to identify unique social, economic, industrial. Thematic making funding is a massive term that is broadly used, mainly within fairness investing, however, its which means can differ depending on at the audience. In general, it is miles considered to intend a top-down funding method with a Focal factor on broader, macroeconomic topics that a fund manager can use to identify sturdy companies. Thematic investing allows you to put money into long-term inclinations or themes. Thematic making funding focuses on the economic, social, technological, and environmental modifications which have an impact on how we live.

Source:   http://indexcalculations.wikidot.com/essentials-of-index-for-everyone-else

Artificial Intelligence and Big Data Index

Artificial Intelligence Indices

The AI Index is a start line for informed conversations about the country of synthetic intelligence (AI). The record aggregates various sets of metrics and makes the underlying data effortlessly available to the general public. The AI Index Report tracks collate, distills, and visualizes facts referring to artificial intelligence. Its venture is to provide unbiased, rigorous, and comprehensive records for policymakers, researchers, journalists, executives, and the general public to increase deeper information on the complicated area of AI.

Blockchain Index

A blockchain is a decentralized, distributed, and many times public, digital ledger this is used to file transactions during many computers simply so any involved document cannot be altered retroactively, without the alteration of all subsequent blocks. Blockchain Index is a cryptocurrency token issued at the Ethereum platform. Blockchain Index is a passively controlled Crypto Strategy investing in installation blockchain is based on tasks with active beta components. Blockchain Index is designed to tune the performance of organizations which can be either actively using, investing in, developing, or have products.

Index Development

An index can display the development of a certain stock exchange, along with the Helsinki Stock Exchange, or uncooked material inside the markets. As for index budget or ETFs, they song the improvement of a positive index and put money into commodities or the shares of businesses primarily based on the development. Index investing is a passive approach that tries to generate similar returns as a broad marketplace index. Investors use index investing to replicate the overall performance of a specific index – generally, fairness or fixed-income index – by shopping exchange-traded price range (ETF) that carefully song the underlying index.

Source:   https://indexcalculations.sitey.me/blog/artificial-intelligence-and-big-data-index

Know Everything About Indices

Index Maintenance

As indexes are changed the statistics in them turn into fragmented or scattered. This way you'll need to agenda index preservation to rebuild, reorganize, defrag, and update records to run efficiently.

Smart Beta Indices

Smart Beta investing combines the benefits of passive investing and the benefits of lively investing strategies. Alpha is obtained by Smart Beta Indices; risk is reduced or diversification is increased at a cost decrease than traditional active manipulate and marginally higher than straight away index investing. It seeks the nice production of an optimally assorted portfolio. In effect, clever beta is an aggregate of the efficient-market hypothesis and value investing. Smart beta is defined as a funding strategy that emphasize the utilisation of alternative index creation rules to traditional marketplace which is based on capitalisation indices. Smart beta emphasizes taking pictures of funding elements or marketplace inefficiencies in a rules-based and apparent way. The increased popularity of smart beta is related to a preference for portfolio chance management and diversification along factor dimensions, as properly as looking for to enhance hazard-adjusted returns above cap-weighted indices.

Thematic Investing

Thematic Investing is a form of funding that aims to identify macro-level developments and the underlying investments that stand to enjoy the materialization of these tendencies. Thematic investing is a broad term that is widely used, specifically within fairness investing, but its meaning can differ depending on the audience. In general, it is considered to intend a top-down investment method with a focal point on broader, macroeconomic topics that a fund supervisor can use to identify sturdy companies. Thematic investing allows you to put money into long-time period developments or themes. Thematic investing has a specialty of the economic, social, technological, and environmental ameliorations that affect how we live.

Source:   https://indexcalculations-21.webself.net/blog/2020/02/13/know-everything-about-indices

All You Need to Know About Index

The definition of an index is a guide, listing or sign, or a variety of users to measure change. An instance of an index is a list of employee names, addresses and call numbers. An example of an index is a stock market index which is based totally on a trendy set at a selected time. An index value must reflect widespread market conditions, and changes based totally on changes inside the marketplace.

Robotics Index

Robotics is the department of an era that gives with the design, construction, operation, structural disposition, manufacture and alertness of robots. The Robotic Index is constructed to minimize threat via limiting reliance on the largest-cap players, and it's far cautiously structured to seize the boom of rapidly developing robotics and automation businesses across the globe.

Custom Index

A Custom Index is a tailor-made solution designed to healthy clients' precise mandates or funding strategies. Clients have the opportunity to either alter an existing S&P Dow Jones index or create an entirely new index primarily based on their particular requirements.

Index Calculation

The marketplace capitalization of each of the 30 groups comprising the index is first decided by way of multiplying the charge of their stocks with the variety of shares issued with the aid of that company. The free-float market capitalization of the Index calculation parts is then divided using a number referred to as the Index Divisor.

Calculate the index using dividing the current-year result of 0.687 with the aid of the previous year-end result of 0.667 to yield an index of 1.032. Divide income for the later duration by way of sales for the earlier length to calculate the sales boom index. In the example, divide $80,000 via $60,000 to attain an income growth index of 1.333.

Source:   https://indexcalculations.webnode.com/l/all-you-need-to-know-about-index/