NISM Series XIII Common Derivatives Certification Exam Notes
Page 20 Of 303
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Index Maintenance Costs: Fees associated with updating and managing indices.
Liquidity Risk: Poor liquidity increases trading costs and price volatility.
Index-Based Investing: Growing popularity due to low-cost, diversified exposure.
Corporate Actions: Adjustments in indices for events like dividends or splits.
Index Reliability: Ensured by professional management and transparent rules.
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