BSE Launches New Large-Cap Factor Indices

New Delhi, Dec 10 (PTI) BSE Index Services, an arm of BSE, on Wednesday announced the launch of four new large-cap factor indices, based on momentum, low volatility, value, and quality factors, to aid investors in tracking specific market strategies.

The new indices are built from the BSE large-cap total market capitalisation (TMC) index and apply a 5 per cent stock level capping.

The newly introduced indices -- BSE LargeCap 100 Momentum 30, BSE LargeCap 100 Low Volatility 30, BSE LargeCap 100 Enhanced Value 30 and BSE LargeCap 100 Quality 30-- can be used for running passive strategies such as exchange-traded funds (ETFs) and index funds.


Also, it can be used for benchmarking of PMS (Portfolio Management Services) strategies, Mutual fund schemes and fund portfolios.

"Investors can now access a broader spectrum of market opportunities, further enriching their investment strategies with this latest addition to BSE's suite of indices," BSE Index Services said in a statement.

Ashutosh Singh, MD and CEO of BSE Index Services, said, "Building on the success of factor launches on BSE 500 universe earlier in the year, we are pleased to expand our factor family with the launch of four new factor indices, this time on the large cap universe.

"These indices in the same vein as our BSE 500 universe factor family, will be reset on a quarterly basis with the introduction of an innovative score-based only weighting method".