Read a stock market index
1 answersQuestion asked ( August 15, 2009 , Shopping / Finance )
I’m looking to start using my own trading software to enter the world of online trading. I haven’t learnt yet how to read a stock market index and how it would benefit me as an investor. Can someone throw some light on this?
Answers to : stock market...
Answer
Investors use the stock market indices to follow the market trend and the fund managers assess the performance of funds. The fund managers determine the performance of their portfolios against a particular benchmark stock market index. The investors base their decision to pick the stocks which are considered good investments which would outperform the market. Investors and fund managers time their investment decisions based on the market trends and their perception of stock market indices and portfolio of stocks. The fund managers use stock market index to align their decision of asset allocation. Investors can choose the markets, other than equity market in which they would like to invest (like property markets, commodity markets, bonds etc)
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