Equal Weighted Index: Meaning, Features, Benefits & How It Works
Introduction Stock market indices investors ke liye market ka overall direction samajhne ka ek important tool hote hain. Aksar log market-cap based indices jaise Nifty 50 ko follow karte hain, lekin ek alternative approach bhi hota hai jise equal weighted index kaha jaata hai. Ye approach traditional indices se kaafi alag hoti hai aur kai investors ke liye better diversification offer karti hai. Is blog me hum detail me samjhenge ki equal weighted index kya hota hai, ye kaise kaam karta hai, aur price weighted index se kaise different hai. What Is an Equal Weighted Index? Equal weighted index me index ke har stock ko barabar weight diya jaata hai, chahe uska market capitalisation ya share price kuch bhi ho. Matlab index me included har company ka impact index movement par equal hota hai. For example, agar index me 10 stocks hain, to har stock ka weight 10% hoga. How Equal Weighted Index Works Is type ke index me: Har stock ko same importance milti hai Periodic rebalancing hoti...