NSE Indices Ltd., an NSE group company, has today launched 2 dynamic asset allocation indices namely \u2018NIFTY 50 & Short Duration Debt \u2013 Dynamic P\/E index\u2019 and \u2018NIFTY 50 & Short Duration Debt \u2013 Dynamic P\/B index\u2019. Within these indices, the asset allocation between debt and equity is dynamically managed based on a model that compares the current Price-Earnings ratio (P\/E) or Price-Book ratio (P\/B) with historical Price-Earnings ratio (P\/E) or Price-Book ratio (P\/B) of NIFTY 50 in the previous 7 years.<\/p>\n
The \u2018NIFTY 50 & Short Duration Debt \u2013 Dynamic P\/E\u2019\u00a0 and \u2018NIFTY 50 & Short Duration Debt \u2013 Dynamic P\/B\u2019 indices capture the performance of portfolios where asset is allocated among following components<\/p>\n
1) Equity component \u2013 NIFTY 50 TR Index<\/p>\n
2) Debt component – NIFTY Short Duration Debt Index<\/p>\n
3) Equity Arbitrage Component \u2013 Long NIFTY 50 TR Index and Short NIFTY 50 Futures\u00a0 Index<\/p>\n
4) CBLO Component \u2013 NIFTY 1D Rate Index<\/p>\n
In these indices, the maximum allocation to equity is 80% and minimum allocation is 65%. In case, the model prescribes an allocation to equity that is lower than 65%, equity arbitrage is used to maintain the equity allocation at 65% in these indices. In case arbitrage is used, 10% of the asset allocated to NIFTY 50 Futures Index (short) is allocated to NIFTY 1D Rate Index (CBLO component).<\/p>\n
\u201cThe two newly launched NIFTY Dynamic Asset Allocation indices employ a dynamic, rule-based asset allocation mechanism, designed to tactically combine equity and debt. The unique asset allocation model alters the index\u2019s exposure to equity based on whether equity market presently appears to be relatively expensive or cheaper, thereby optimizing the risk-return ratio for investors. These indices also appropriately fill the gap due to the absence of a relevant benchmark for performance comparison of the popular dynamic asset allocation category offered by mutual funds in India\u201d said Mukesh Agarwal, CEO, NSE Indices Ltd.<\/p>\n
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NSE Indices Ltd., an NSE group company, has today launched 2 dynamic asset allocation indices namely \u2018NIFTY 50 & Short Duration Debt \u2013 Dynamic P\/E index\u2019 and \u2018NIFTY 50 & Short Duration Debt \u2013 Dynamic P\/B index\u2019. Within these indices, the asset allocation between debt and equity is dynamically managed based on a model that […]<\/p>\n","protected":false},"author":3,"featured_media":2269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[1898,1896,1897],"class_list":["post-2268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-nifty-50-short-duration-debt-dynamic-p-b-index","tag-asset-allocation-indices","tag-nifty-50-short-duration-debt-dynamic-p-e-index"],"aioseo_notices":[],"yoast_head":"\n