The most widely followed Indices are those that aggregate the stocks of some of the world’s largest and best-known corporations.
Stock Indices track the performance of a basket of individual stocks, enabling the investor to trade on the performance of that stock market as a whole, rather than in individual shares and companies. You can choose from a range of indices and access the global markets. As a result, indices are one of the most popular investment products amongst investors offering:
The price movement of an index is usually expected to be smoother than other financial instruments. For example, one individual stock can’t bring a huge spike in the price of the index. However, if the average number of stocks in an index rise in value, then the index is expected to go up in value as well and vice versa. Political and economic shifts, as well as earnings, can affect the Stock Indices.