A stock index or rather I say a stock market index is nothing but the worth and value of a section/part of the stock market.  This is basically used by the investors and all the financial veterans to describe the market and to calculate the returns they will be getting on their investment. If you are looking for long term investment than you can go for equity index.

A stock index may also be calculated on the method used to determine the price of that share.  There are many terms of which we derive an index for example custom index.  They tell you the relativity of the stock market and your surplus you can gain. Similarly dividend index guides you about the relativity of your investment and gain.

 Following are the steps one must follow to build your custom MSCI index

  • Define your benchmark needs beyond the MSCI core indexes- One has to decide a benchmark of their objectives and needs and accordingly set goals, these benchmarks has to be above the MSCI core indexes.
  • Translate through customization options – one has to translate these needs with customization options and make sure you choose your own options instead of the common ones, customization is the key to higher returns, and based on your knowledge and risk objectives and factors you design your own options.
  • Choose deployment options – you have to choose options that are effective, so one has to make sure the customized options they have chosen for their investment are deployed options. As this is the safest way you take risk and that is why the indexes help you to take this decision.

 The MSCI custom index helps us to get a broad coverage and helps us even in the difficult calculations and gives us a data with respect to global approach.

 If you follow the above mentioned tips properly than you can build your own custom MSCI index flexibly and without any problem. This approach is hassle free and will work in your favor only if you put yourself into action.

Source : https://storify.com/equityindex/how-to-build-your-custom-msci-index