Things you need to know before investing in stock exchange

You want to earn money faster? Thinking of some quick investments? Well the doors of stock exchange trading are always open for you. Here are few things one must keep in mind before they plan to invest their hard earned money in the stock exchange. One can even refer to smart beta for individual approach.

But if you want your investment to have a macro approach than you are probably into thematic investing.  Usually the people who are regular with stock exchange trade they are familiar with the terms like total return indices, equity index extra. While if you are a beginner you should know these things to get a gist of stock exchange trade to know how to invest money

• Risk- investment in stocks can be really risky; if you are looking for short term profits than make sure you have studied the background enough and well in advance to know the risk uncertainties in the coming future.
• Brokerage – initially when you start trading in stock exchange you work with a broker. Now with the help of technology you can easily do it with online websites of brokerage so you can basically trade from your comfort zone.
• Diversification – though you have very little money in your hand to invest make sure you still diversify it in different stock exchanges. This will help you as you are not risking your investment in one thing chances are you can make profit from one and loss from another instead of just being centered.
• Dividends – many corporate pay you dividends in a pre decided percentage ratio and you can still earn money when you sell the shares at a higher rate, so the stock exchange veterans say invest in a company with higher dividend as the possibility of higher sales rate lay with them.
• Mutual fund – if you investing in mutual funds it is nothing but investment in stocks as well as in secured stocks where the rate of loss is minimal to the investment about, so make sure you read about them in depth before investing.

Source : https://sites.google.com/site/equitysindex/things-you-need-to-know-before-investing-in-stock-exchange

Things you need to know about Stock index calculation

Stock market is nothing but the aggregation of the sellers and the buyers of stocks, but many people do not know that not all the companies are listed on the stock exchange. These stocks are nothing but shares of the company/ organizations which they trade in the market.  A stock market index is nothing but a measurement of the value of the stock market. Index calculation is done in order to draw the conclusion of return on the investor’s investment. Index providers use this term generally for the financial managers and the general investor’s better understanding.

Index maintenance is very important as it guides n number of people about the progress and loss of the stock market.  Following are the two main stock market indexes

• Sensex – Sensex is also known as sensitivity index and is used by the Bombay stock exchange, the top 30 companies of the BSE are taken into consideration while calculating for the sensex. The positive the number the better the condition of the stock exchange market.
• Nifty – Nifty is also known as Nifty fifty as about 50 companies are taken into consideration while calculating for Nify. These 50 companies are representing 24 different sectors, It is a NSE (National stock exchange) indicator and it represents almost 47 percent value of he traded shares on the stock exchange. NSE is calculated using 1995 as the base year and the value of the base index as 1000.

Following is the criteria for calculating the stock market index

• Listing history – the listing history of the particular index be it Nifty or sensex.
• Record – the company listed should be holding a good track record.
• Market capitalization – The Company should be falling into the 100 BSE market capitalizations and should also be holding 0.5 percent of it.
• Industrial representation - The Company should be a leader in the industry it is working.

So these are the basic criteria’s one must fulfill to get listed on the stock exchange index’s, there are many other indexes as well a company can go for.

Source : http://equityindex.webnode.com/things-you-need-to-know-about-stock-index-calculation/

Four reasons for investing in stock market

Though we all know and are familiar with stock exchange and what does it does? And how do we function we still need to have some good strong reasons before stepping into them. Stock market is not a simple trade market, it has many terms and conditions one needs to know one wrong bend and you will play at the risk of your hard earned money. There are many things one has to refer to do before investing like market index. There are many index services as well for your reference and guidance.

These index companies are the best to go for to gauge clarity on stock market. And index development is very crucial in stock market; these all things will contribute and affect your income/surplus from the stock markets.

Following are the reasons one must consider before investing money in stock market.

• Potential growth – stock markets offer you growth in income, the saying is so realistic higher the risk higher the gain and it completely fits in when it comes to stock market. If you are looking for some short term profit you can surely go for stock markets and make money either by dividends or by frequent buying and selling.
• Short term benefits – unlike other investment options stock exchange offers you short term benefits. You can make profit by instant buying and selling of shares, though you will require skills and constant tracking of the market but they eventually help you a lot.
• Multiple options – stock market offers you multiple options of bonds, debentures and equity shares. Each play a different role, you draw your objectives and develop a good understanding of these roles and draw a mid way to know which one is the best option for you to make good money.
• Values your investment – Probably the surplus or benefit you will earn from stock market will be at least 5 times more than your other investment options like fixed deposit and savings account interest etc. though the risk is higher and so is the gain.

Source : https://equityindex.jimdo.com/2017/02/08/four-reasons-for-investing-in-stock-market/

How to build your custom MSCI index

A stock index or rather I say a stock market index is nothing but the worth and value of a section/part of the stock market.  This is basically used by the investors and all the financial veterans to describe the market and to calculate the returns they will be getting on their investment. If you are looking for long term investment than you can go for equity index.

A stock index may also be calculated on the method used to determine the price of that share.  There are many terms of which we derive an index for example custom index.  They tell you the relativity of the stock market and your surplus you can gain. Similarly dividend index guides you about the relativity of your investment and gain.

 Following are the steps one must follow to build your custom MSCI index

• Define your benchmark needs beyond the MSCI core indexes- One has to decide a benchmark of their objectives and needs and accordingly set goals, these benchmarks has to be above the MSCI core indexes.
• Translate through customization options – one has to translate these needs with customization options and make sure you choose your own options instead of the common ones, customization is the key to higher returns, and based on your knowledge and risk objectives and factors you design your own options.
• Choose deployment options – you have to choose options that are effective, so one has to make sure the customized options they have chosen for their investment are deployed options. As this is the safest way you take risk and that is why the indexes help you to take this decision.

 The MSCI custom index helps us to get a broad coverage and helps us even in the difficult calculations and gives us a data with respect to global approach.

 If you follow the above mentioned tips properly than you can build your own custom MSCI index flexibly and without any problem. This approach is hassle free and will work in your favor only if you put yourself into action.

Source : https://storify.com/equityindex/how-to-build-your-custom-msci-index