The indices have a base value of 1000 with a first value date of June 20, 2005 | Photo credit: Nharika Kulkarni
Asia Index Private LTD, a subsidiary of absolute property of the EBS, launched four new rates based on factors with quarterly reconstitution schedules on Tuesday, marking a significant change in the Beta Investment Panorama of India.
The new suite includes BSE 500 Improved Value 50, BSE 500 Low Volatility 50, BSE 500 Momentum 50 and BSE 500 Quality 50, all extracted from the BSE universe 500. The indices have a base value of 1000 with a first value date of June 20, 2005.
Intelligent beta indices
“We are pleased to announce the launch of four new rates of factors that expand our set of Beta Intelligent offers,” said Ashutosh Singh, MD and CEO or Asia Index Pvt. Limited.
“The introduction of the quarterly reconstitution schedule in our factors will allow the factors of factors to capture the most recent financial data and actions.”
Quarterly reconstitution repeats a significant deviation from the traditional six -month re -ququilibrium calendar in the India index market. According to Singh, this approach helps distribute commercial activity more uniform during the year, which makes the portfolio management more efficient.
“What happens in a six-month schedule is in a case that they have to change 80-90 percent. That is not equally distributed. Therefore, administering it for one day becomes more headache,” said the launch event Singh. “We are children to distribute that about four periods of time so that for the concessionaire and for the fund manager they become easier to manage.”
The indices incorporate the detection of liquuidity to guarantee the negotiation and limit the individual weights of 4 percent shares to the risk of prevention concentration. They also use a 40 percent damping rule to minimize unnecessary billing, allowing existing components to remain in the portfolio as long as they do not fall beyond the 70sTh Position in classifications.
Each index of factors is aimed at specific investment characteristics. The impulse index follows the principle that investors should “let the winners run, however counterfit, and do not try to fall knives, however tempting it is,” said Singh.
The quality index aims to identify “consistently profitable companies that are resistant and work well through market cycles”, while the low volatility index focuses on actions with lower price fluctuations.
The performance data presented at the launch showed that the factors rates constantly exceed the main BSE 500 index in several periods of time. From 2005 to 2024, the impulse index exceeded the main index 14 times, quality 13 times and low volatility and improved value 11 times each.
The launch comes the Asia index approaches its first anniversary as a BSE subsidiary of total property after BSE acquired the participation of S&P in its joint company last year. Singh highlighted the company’s progress, noting that they had doubled their customer base from approximately 160 to more than 300 in the last ten months.
These indices are directed to both institutional and retail investors, and Singh points out that, unlike global markets where the investment of factors has been mainly directed to the institution, “in India, it has been a story so far.”
The new indices can serve as the basics for passive investment products such as ETF and index funds, as reference points for portfolio managers, or as performance meters for sectoral investments in India.
Posted on May 20, 2025
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