ekaksha

Provide some pros and cons of the Full Replication or Full Sampling technique of Index Portfolio Strategy Construction?

Do you know about the positives and negatives of Index Portfolio Strategy Construction technique known as Full Replication or Full Sampling?
Add a comment
0%

6 replies

attourney
"Full Replication or Full Sampling: All securities in the index are purchased in proportion to their weights in the index. • Advantages: All the securities in the index are purchased in proportion to their weights in the index, It helps to ensure close tracking • Disadvantages: More transaction cost, High commission for reinvestment in dividend. Source: http://in.docsity.com/en-docs/Equity_Portfolio_Management_Strategies_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
Add a comment
anu-malik
involves buying the shares in the proportions that make up the index.
Add a comment