Asia Index expects robust growth, bets big on customised products

The joint venture has already launched a large number of index products here and is also looking at opportunities in the neighbouring countries.

"We are targetting fund houses, portfolio managers and others for our customised index products. This market is slowly growing and we feel there is a need for a customised index products in India. We are pretty positive on this," Asia Index Director (Business Development) Koel Ghosh said. "We are providing customised index products in India.

For example, if a portfolio manager comes and wants an index on the basis of certain criteria in his mind, be it based on fundamentals or volatility, we prepare customised indices," Ghosh said. "It can also be a co-branded index, but that would have to follow our established rules and framework," she added.

"The idea of this business is not only to maintain the existing BSE <g data-gr-id="43">indices,</g> but grow out and create more indices which are relevant for local markets and also bring the global expertise to the Indian turf," Ghosh said. BSE and S&P Down Jones Indices announced this strategic partnership in February 2013. Talking about the partnership, Ghosh said, "BSE is primarily in exchange business and we are into index business and both of us have been in our respective businesses for over 100 years. It was 

a natural <g data-gr-id="58">partnership given</g> the similar kinds of parentage we have had.

"We are a leading index provider globally and BSE wanted an expert to come in and so we formed a JV and incorporated this as an Indian company."

Asked about her views on the growth outlook for index business in India, Ghosh said, "I am very optimistic. It started with gold ETF and the market is going very strong.

"We also have EPFO funds coming to the market. It is early days, but it is growing at a very good pace. "What is required is a lot of education... At <g data-gr-id="39">times</g> you would feel that a benchmark index such as Sensex has been growing so well and you missed out on the rally.

"For example, if you invest in a Sensex ETF, you do not need to actively track the performance on a daily basis as you would anyhow know what have been the Sensex movements.

"Indexing as a concept has to be simplified and we are trying our best to do that and explain the product to retail as well as institutional investors," she added.