The BSE SmallCap 500 Universe Factor Indices are reconstituted quarterly, have a base value of 1,000, and the first value date is September 19, 2005, along with the additional screening of 90% Stock Trading Frequency.
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The indices launched today include – BSE Smallcap 500, which is a combination of the constituents of the BSE 250 Smallcap Index and the BSE 250 Microcap Index, BSE Smallcap 500 Quality 50, which measures the performance of the 50 highest quality companies in the BSE Smallcap 500 Index, based on their quality scores.
The BSE Smallcap 500 Momentum 50 tracks the performance of the 50 companies in the BSE Smallcap 500 Index with the strongest persistence in relative performance, based on momentum scores. The BSE Smallcap 500 Low Volatility 50 monitors the 50 least volatile companies in the index, while the BSE Smallcap 500 Enhanced Value 50 measures the performance of the 50 companies with the most attractive valuations, based on value scores.
“The launch of the BSE SmallCap 500 Universe Factor Indices marks an important expansion of our factor-based index offerings. This index family provides transparent and rules-based benchmarks designed to capture key equity factors across India’s Small-Cap segment by incorporating distinct factor strategies such as Quality, Value, Momentum and Low Volatility,” said Ashutosh Singh, MD and CEO of BSE Index Services, highlighting the significance of these indices.These indices aim to support product innovation and offer asset managers and institutional investors efficient tools to access differentiated small-cap factor exposures within the broader equity market,” Singh further said.Also Read | Samir Arora-backed Helios Flexi Cap Fund adds Tata Motors, exits REC and 2 others
These new indices can be used for running passive strategies such as ETFs and Index Funds. It can also be used for benchmarking of PMS strategies, MF 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.
