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.