Sector Investing: Another Approach

 

Source: Asia Index Private Limited. www.asiaindex.co.in  One-year annualized Total return for the year ending June 16,, 2014.  Charts and graphs are provided for illustrative purposes.  Past performance is no guarantee of future results.  This chart may reflect hypothetical historical performance.  Please see the Performance Disclosures for information regarding the inherent limitations associated with back-tested performance. 

If we evaluate the performance of the indices over a longer term, we see that the trend of out performance may not be similar, hence it is important to evaluate the investment profile and time horizon when investment strategies are formulated.

Index investing can easily facilitate sector investing.  With lower costs and ease of transaction, this form of investing helps support various investment strategies.

This article was written by Koel Ghosh, head of business development, Southeast Asia, S&P Dow Jones Indices.

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