What should one look in an index provider

Having an index provider is very beneficial for one and one has to know more about it. Custom index and many other indexes are already there for one to go through different options. So one must know list of things one must see while they are looking for an index provider.

Index calculation considers many different parameters which makes the index valuable. But one must know these different things while they are looking in for an index provider.

• Objectivity – The benchmark construction of the index should be completely transparent and determined with complete purpose and objective.

• Accuracy – The index must be an accurate inflection of the market, one must remember that having complete accuracy is important, there shouldn’t be any great difference in the outlook of the market and the index as that will be misleading for the people.

• Multifactor – one must see that the index provider considers multiple factors and then analyze accordingly. The growth and the current external factors must also play a key role in deriving the index.

• Timely and efficient construction – one must remember that the benchmarks rebalancing approach will be nothing but a reflection of the market changes. So the current and ongoing market changes are very important to be considered by the index provider to draw proper and accurate conclusion for their investors to know more.

Seeing these all criteria’s does play a key role one must know that the index is having all these parameters behind them, make sure you know that these parameters are been considered by the index provider in a strict way while they were drawing the index.

If any of these parameters were manipulated by the provider then this makes the indicator absolutely negligible and not worth, one must know that these parameters are very important for one to analyze while they are making an investment in the market.

There are many index providers which work on these above mentioned factors only so spotting the correct index provider will not be an issue.

Source : https://sites.google.com/site/equitysindex/what-should-one-look-in-an-index-provider

Benefits of dividend investment

Investing your amount into dividend investment is a smart idea, but one has to refer to the ongoing dividend index to make a smart investment of their money.

Thematic investing is also one option that you can look for other than dividend investment, the total return indices are important as this helps a person for better understanding of the market situation.

But following are the benefits of having dividend investment.

• Passive income – The dividends enable an investor to have a passive flow of income and to get that one can choose to reinvest the amount earned or personal use them. So dividend stocks are quite attractive for someone who is looking for potential supplementary income.

• Ownerships along with profits- if you are an equity share holder the only way they earn profit is at the times of sales of their shares or when the company decides unlike the dividend holders they get the benefit of regular dividend as well as they are the constant owners of the shares as well, they need not sell their shares to earn profits.

• Double income – Well normally the company gives profits as dividends only when they are doing extremely good and this increases their price on the stock market, so the dividend owners get double income of having profits in the form of dividend and having raised amount of money as well.

• No further of personal investment – if you buy dividend shares of one company and willingly invest it than the company might give you away some dividends out of it. For this you must remember that you can always choose to reinvest the x amount earned into the shares of the same company, as it is you already know that the company is doing extremely well because of the dividend payouts they have been giving you.

People must always remember that dividend shares though are risky but the potential returns of these are way too high as well so investing in them will be surely double profitable for one. Make sure you have a proper research before making an investment.

Source : https://equityindex.wordpress.com/2017/04/11/benefits-of-dividend-investment/