New Next 50 Indices help shape investment decisions, but could take time to gain traction

A key step in their adoption will be financial institutions developing linked products, enabling broader investor participation: analysts

The iEdge Singapore Next 50 Indices launched by the Singapore Exchange (SGX) this week will likely prove useful in helping investors shape their investment decisions, analysts say. But they warn that it could take time for institutional investors and financial institutions such as fund managers to get on-board.

“At the early stages, these indices most likely will act as benchmarks for institutional investors,” Thilan Wickramasinghe, head of research for Singapore at Maybank Securities, told The Business Times.

This means that investors could use the iEdge Singapore Next 50 Index and iEdge Singapore Next 50 Liquidity Weighted Index as standards for measuring and structuring their portfolios. “The new indices should help in guiding investment decisions,” he added, noting that they will “complement existing benchmarks”.