Report card of Islamic indices
The reason indices are important is because they symbolize the DNA of investing, be it conventional, ethical or faith based.
The three major functions of the indices are:
- they provide a pulse of the health of the market place (in theory),
- they are the basis of investable products and
- they allow investors to know how their fund, portfolio , stock, etc, behaved against the benchmarks, be it DJIA, S&P 500, FTSE 100, Russell 2000, TR-IR Islamic Indices.