Indexes

A solid foundation for your investment portfolio. Index funds are perfect for those who want to invest but do not have the time or desire to monitor the markets themselves. They allow you to focus on your goals while your investments grow automatically.

Methods of Index Calculation

Arithmetic Mean Method

It is convenient because it allows for a quick response to significant price fluctuations. This method has a significant drawback - the lack of weighting.

Unweighted Arithmetic Mean Method

Various weighting methods are applied for this method, which allows achieving accurate results.

Weighted Geometric Mean Method

This method is suitable for an index with many stocks that vary significantly in value. This method helps to objectively calculate the quotation.

Unweighted Geometric Mean Method

For calculations using this method, an additional factor of the company's total capitalization is taken into account.

5 Reasons to Choose Indexes

# 01

Predictability Indexes with a dominant share of a specific sector will generally respond accordingly.

# 02

Lower Risks than Individual Stocks By investing in a wide range of companies through a single asset, even if the shares of one or more companies decrease, the index as a whole can still rise.

# 03

Convenience No need to spend extra time choosing stocks independently.

# 04

Buy More, Research Less Ability to earn without the need to analyze the performance of individual companies.

# 05

Lower Costs Trading on indexes can be more cost-effective than buying several individual stocks.

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