1. Index Constituents Selection Criteria
fund must satisfy the following
four criteria to be a constituent of the FEFI
open-ended equity fund
daily NAV pricing available
available for sale on FSM Platform
equal-weight the index so that
each fund in the index contributes equally to the overall index return.
index is not AUM weighted,
returns for a fund with a smaller AUM will have the same impact on the
another fund with a larger AUM. The index return thus reflects the mean
of the underlying funds on an equally-weighted basis. The FEFI will be
calculated in INR terms, i.e., the NAV of all the funds will be in INR.
Returns of consitutent funds since the index inception date
of 31 December 2008; they are calculated on NAV-to-NAV basis
3. Index Level & Inception Date
index is calculated on a daily basis
and is computed on all trading days. For a particular day, if more than
funds in the index do not have Net Asset Value (NAV), the index will
computed for that particular date. The index was incepted at 1,000
31 December 2008.
Ended Equity funds with Growth Option
are included in the index;
and dividend reinvestment options of a fund are not selected, as
dividend and dividend reinvestment options led to duplication and
the index values.
4. Index review
review of the
FEFI will happen on 31st
December 2009, with subsequent
occurring semi-annually, i.e., 30th
June and 31st
every year. If
December are non-working days, the indices will be
the next working day.
5. Dealing with
New Fund Addition (and Removal of Old / Liquidation)
index is reviewed twice a year
December) to incorporate
funds that have
been added to the platform. New funds on the FSM platform will be
the index only on these two dates. The availability of daily NAV is the
criterion for the inclusion of a fund’s returns in the index.
While the index
covers open-ended funds, funds may cease subscription for a variety of
Where the daily NAV is provided, the fund’s returns will
into the index.
fund which is not open for
subscription but still provides daily NAV will only be removed from the
on the review date (i.e., 30th
June and 31st
If a fund is liquidated or merged with another fund, daily NAV ceases
a liquidated or a merged fund will not contribute to the
in the FSM All-Equity Fund Index (IN) as at 31 December 2008
are 79 component funds in the
FSM All-Equity Fund Index (IN) as at 31 December 2008.