This is exclusively for Traders……….!!!
Have you ever thought of managing your portfolio with your own index? If your answer is No, then think of creating your own Index and then mange your stocks in your portfolio..

An Index reflects the behaviors of overall market and act as a nerve of stock market globally. Index like CNX Nifty, Defty, Dow all reflecting the health of our economy individually as well as country wise. Just like this , Creating own Index by a trader helps him to keep checking the performance of the portfolio on regular basis without analyzing each and every stock individually.
For example: A person is having 30 stocks in his portfolio with a current value of ` 20, 00000. Analyzing 30 stocks on daily basis would be a hectic task. But, having an Index which reflects the movement of the portfolio gives an easy access to detect the discrepancies or any changes, if required.
Let us make an Index of 5 stocks in portfolio A..
STOCKS CURRENT MARKET CAPITALIZATION BASE MARKET CAPITALIZATION(2007)
ACC 16,778685 156542
Grasim 6787517 61524
Bajaj-Auto 27187165 615240
Dalmia cem 6671615 64534
Rpower 576161417 8574653
TOTAL 633,586,399 9472493

For Making true Index one needs to analyze a method of preparing an Index ..
If a trader is luking for timely values he can look for Price Index by giving weight to each an every stock.. else Market capitalization method is best to judge the movement of the portfolio…In this type of index, the equity price is weighted by the market capitalization of the company (share price *number of outstanding shares).
Index = Current market capitalization * base value
Base market capitalization

= 633,586,399 * 1000 = 66886
9472493
Behavior of Portfolios: Good market Indicator should accurately reflect true picture of market behavior. This is achieved by diversification of the stocks in the portfolio. Maintaining a sound Index includes updating and maintaining of its stocks market value on daily basis... By making their own Index for their portfolio a trader can analyze the stock in a better way.. visit us http://ping.fm/8xRON