BSE Index Services Unveils New Large-Cap Factor Indices

BSE Index Services announced the launch of four new large-cap factor indices to help investors track specific market strategies. These indices are designed to offer investors access to diverse market opportunities and will be reset quarterly using a unique score-based weighting method.

BSE Index Services, a division of the Bombay Stock Exchange, introduced four innovative large-cap factor indices on Wednesday. These new indices focus on momentum, low volatility, value, and quality factors, targeting investors interested in specific market strategies.

The formulations derive from the BSE large-cap total market capitalization index, each capped at a stock level of 5 percent. Designed to support passive investment strategies like exchange-traded funds (ETFs) and index funds, the indices also serve as benchmarks for Portfolio Management Services (PMS), mutual fund schemes, and fund portfolios.

'Investors now have access to a broader spectrum of market opportunities, enhancing their investment strategies,' a BSE Index Services spokesperson stated. CEO Ashutosh Singh highlighted the success of earlier indices, noting the quarterly reset approach and innovative score-based weighting method.

(With inputs from agencies.)