The BSE Sensex Next 30 index is likely to be an attractive proposition for investment managers and investors looking to benefit from the growth of the next generation of market-leading companies.
The weighting of the 30 stocks in the index is based on their free float market capitalization. The index includes sectors such as financial services, consumer discretionary, energy, commodities, healthcare, industrials, FMCG, IT and utilities.
Additionally, a constituent must have an underlying derivative contract to be included in the index. The first valuation date is June 20, 2014 and the base value is 10,000. There is a USD variant BSE SENSEX Next 30 USD.
The index constituents are reviewed half-yearly and rebalanced quarterly. “This new addition to the BSE index portfolio will enable investors to access a wider range of market opportunities and enrich their investment strategies,” the release said. “The BSE Sensex Next 30 will find wide acceptance among retail and institutional clients as it scores highly on parameters such as liquidity, low impact costs, risk-adjusted returns and superior performance track record. Hence, it is suitable for managing exchange traded funds (ETFs) and index funds as a benchmark for PMS strategies, MF schemes and fund portfolios,” Ashutosh Singh, MD & CEO, Asia Index, said at the index launch. BSE CEO Sundararaman Ramamurthy emphasised that as with all things BSE, customer voice remains a key foundation for product innovation at AIPL.
“There is a lot of white space to be addressed by asset managers in India and globally and this is the first in a series of initiatives that will be launched,” Ramamurthy said.
Delivering the keynote address, Nilesh Shah, MD, Kotak AMC said that there is a need for more relevant indices in the capital markets space and he welcomed credible institutions like AIPL to undertake product innovation so that asset managers have a strong option to run passive strategies as benchmarks.
