The BSE Sensex Next 30 index is likely to offer a proposition for investment managers and investors looking to benefit from the growth of the next set of market-leading companies.
The weight of the 30 stocks in the index is based on their free-float market capitalisation. The index has representations from sectors like financial services, consumer discretionary, energy, commodities, healthcare, industries, FMCG, IT, and utilities.
Additionally, the constituents must have an underlying derivatives contract to be included in the index. The first value date is June 20, 2014, and the base value is 10,000. It has a USD variant BSE SENSEX Next 30 USD.
The index constituents will be reviewed semi-annually and rebalanced on a quarterly basis.”Investors can now access a broader spectrum of market opportunities, enriching their investment strategies with the latest addition to BSE’s suite of indices,” according to a release.“BSE Sensex Next 30 will have wide appeal among retail and institutional customers as it scores well on parameters such as liquidity, low impact cost, risk-adjusted returns, high vintage of operational excellence, etc. This makes it conducive for running exchange traded funds (ETFs) and index funds for benchmarking of PMS strategies, MF Schemes and fund portfolios,” said Ashutosh Singh, MD & CEO of Asia Index at the index launch. BSE CEO Sundararaman Ramamurthy emphasised that the voice of the customer will remain the key underpinning for product innovation at AIPL just as it has been for everything at the BSE.
“This is the first in a series of launches to follow as there are a lot of white spaces that need addressing from asset managers in India and globally,” Ramamurthy said.
Delivering the keynote address, Nilesh Shah, MD at Kotak AMC, noted that there is a need for more relevant indices in the capital markets space and we welcome credible institutions like AIPL to work on product innovation so asset managers will have robust options to benchmark against and run passive strategies on.
