By: Tim Bennett
18.07.2019
Are stock market investors following the right numbers?
Background

A benchmark should offer…

The FTSE 100


The FTSE All-Share total return index

What is total return?

Price versus total return

Other benchmark challenges

For example, many of the emerging market indices are dominated by certain countries and sectors. Like their better known peers, they also tend to use market capitalisation to measure performance, taking the view that big is best. This isn’t always wise as it can lead to a “buy high, sell low” approach.
Conclusions
The key takeaway here is that the biggest and best-known indices are not always the best. Choosing the right one may need some careful thought where a portfolio is complex. The final choice also needs to take account of variables, such as the decision over whether, or not, to reinvest income.

To find out more
An Investment Manager will be very happy to talk about this at more length, or feel free to email me at the usual place below at [email protected].