Basic Know How About Index Maintenance and Development

by Jemma Barsby Content Writer

Index Provider plays a very important role when it comes to developing a fund as well as the index to make they have a best position in addition to being unique and successful. To make all this come true there are a lot of things that are required besides Index Maintenance. Here we will discuss about Basic know how about Index Maintenance and development.

Index and Fund Development

In order to develop a fund and the index that are considered best positioned so as to be unique, it becomes important to undergo Initial Market as well as the Competitive Landscape Research. Here it becomes important to examine the relevant market requisite for the planned fund as well as identify the competing products simultaneously. Another important aspect is Statistical Analysis. It is only by utilizing the sophisticated quantitative modelling in addition to the qualitative analysis that you can actually identify the key determinants of the product success as well as the ideal positioning. Apart from this another considerable thing is the Index Development as well as Construction. It is on the basis of the research findings that you undertake that the index is developed. One can determine the index methodology on various factors. These come inclusive of the back testing and optimization. Another worth noting thing here is the Index Calculation, Maintenance as well as Dissemination. Once you have finalized the index, you need to handle diverse aspects of index calculation in addition to maintenance as well as dissemination.

Post-Launch Sales as well as Marketing Support

To make the fund successfully you cannot simply launch it and the disappear there is a lot that you are supposed to do. You need to be aware and active as far as marketing and research as well as the sales collateral required to target and gather the assets is concerned. It includes Investment Case that is a short 1-2page note making the case for a fund required for the initial prospecting as well as retail clients. Next is Fund Rationale which is a longer, 3-5page briefing which comes inclusive of the in-depth statistical analysis as well as research which is ideally targeted to retail as well as institutional clients. Another in the list is the in-depth complete research paper known as White Paper that examines the fund from all the sides, Holdings Spotlights which is the Interim updates on index constituents as well as changes and the Customized Webpages.

All in all, this is the basic know how about Index Maintenance and development that you need to be aware about. It is this knowledge that will help you a lot at excelling in the same without having to take the paid guidance from the third parties that are usually to be paid very heavily. In addition to this, a little research on your end can prove to be of a great help in gaining a lot from this.

Jemma Barsby has always been interested to understand the role of the Index Provider. Barsby wishes to analyses the importance of the same not only in index development but also Index Maintenance.