NSE Indices Limited, the index services company of the National Stock Exchange (NSE), has launched 11 new sectoral indices in the market. With this step, the total number of sectoral indices under Nifty has increased to 34, which will enable different sectors of the Indian economy to be tracked more accurately. Investors will get more options. Increasing craze of sectoral investing. This launch has taken place at a time when the interest in sectoral investing (investing in a particular sector) is continuously increasing among investors who focus on themes related to India’s economic growth. More and more sectors are now available for investment through passive products like exchange-traded funds (ETFs) and index funds. To meet this changing demand, benchmark providers are continuously expanding their products. More accurate coverage of the economy According to NSE Indices, this new move aims to provide more in-depth and granular coverage of the Indian economy. The company said that with the help of these new indexes, both established and rapidly emerging sectors will be presented in a better way, which will strengthen sectoral representation in the country’s economy. Passive investment will get strengthened. The stock exchange believes that these new benchmarks can play a big role in the ever-growing passive investment ecosystem in the country. Sectoral indices generally form the basis of ETFs, index funds and structured products. With its help, investors get an opportunity to invest directly in a particular industry instead of choosing shares of different companies. These new indices will serve as reference indices for asset managers in the times to come. What is NSE Indices Limited? NSE Indices was earlier known as ‘India Index Services and Products Limited (IISL). It is a subsidiary of NSE, which handles the management of the entire Nifty family of indices including Nifty 50. The company has a wide range of equity, fixed-income, thematic and customized indices, which are extensively used by fund managers in India and abroad. What are Sectoral Indexes and ETFs?
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NSE launches 11 new sectoral indices: Nifty Power, Retail and Hospitals also included; Now it will be easy to track economy with total 34 indices
