The Strategy of Diversifying Portfolio by Investing in Kuwait Shares Index and International Indexes PDF

Keywords

Applied economics, Investigate, Shares Market, Monthly data, Kuwait.

Abstract

This study investigates the strategy of diversifying portfolios by Investing on Share Index Funds with application to Kuwait Shares Market and that regarded as a new contribution Emerging Markets Literature. Monthly share prices data were used from June 2001 to December 2007 for International Index funds and Kuwait Share Index which reflects fluctuation of market prices. The result of the quantitative measures show that, when Kuwait Shares Market Index were included in the investment portfolios it may not offer the best return compared to other International Share Index Funds but it can reduce total risk and diversify portfolio.