Rama Vision Portal | Investment Management Company

What are some of the best options and investment strategies

Stock Market Index

Indices are the hypothetical portfolio of asset class, securities, and market segments that are used to determine how the market is performing.

Now there are several ways(Market-Capitalization Weighting, Price Weighting, Equal Weights) to calculate and form the index. 

If the index is weighted by Price(Price Weightage), the highest-priced assets will have a greater influence on the index than those with lower values. This method of calculation is followed by Dow Jones Industrial Average


In Market-Capitalization Weightage, changes in the prices of stocks with a large market capitalization have an impact on the component stocks of indexes. This method is more common against the price weightage method across U.S. indices. 

S&P 500 uses this technique giving companies with the greatest market capitalizations a larger percentage allocation.

Top US indices

There are nearly 3.3 million stock market indices around the world, according to new research from the Index Industry Association (IIA) out of which there are 5000 indices only in the US which comprises the US equity market. 

Among those 5000 3 top Indices are widely followed and give a clear idea of how US markets are performing:

  • Dow Jones Industrial Average(DJIA)
  • Standard & Poor’s 500 (S&P 500)
  • Nasdaq Composite

S&P 500 

The S&P 500 is one of the top three indices, introduced in 1957 to track the value of 500 corporations listed on the New York Stock Exchange(NYSE). It began tracking 90 stocks in 1926 and expanded to 500 in 1957. 

 It comprises firms from 11 different industries with no more than 30% of the total budget given to a single sector and Technology having the biggest bite of the pie with 28% and Healthcare with 14% 

When compared to Dow Jones(30 stocks), S&P is believed to be a truer picture of the broader market because it is meant to convey the entire composition of the US economy.

For a company to get listed in S&P 500 it must have:

  • $8.2B market cap. 
  • Stocks must be highly liquid( stock that is easily sold, because there is a large volume of shares traded every day)
  • Public float of 50%+ shares
  • Positive earnings
  • It should be a US company. 
  • 12 months since IPO. 

Top companies in S&P 500:

Apple Inc. (AAPL)6.20%
Microsoft Corp. (MSFT)5.90%
Amazon.com, Inc. (AMZN)3.90%
Facebook, Inc. (FB)2.40%
Alphabet Inc. Class A (GOOGL)2.30%
Alphabet Inc. Class C (GOOGL)2.20%
Tesla, Inc. (TSLA)1.50%
Nvidia Corp. (NVDA)1.50%
Berkshire Hathaway Inc. (BRK.B)1.40%
JPMorgan Chase & Co. (JPM)1.30%

Should you invest in S&P 500?

  • Based on FactSet data, the average annual return for the S&P 500 in the 50 years from 1970 to 2020 has been 10.83%.

And, from 2009-2019 S&P 500 gave a return of 14%, whereas Growth Funds gave a whooping return of 40% but involves a much greater risk as compared to S&P 500. 

  • S&P 500 index is prone to market crashes.
    • All we know about the market is there will surely be a bear run after constant Bull runs triggered by Black Swan events(like the Global Financial crisis in 2008, Covid-19 pandemic) which impacts a huge population. 
  • S&P 500 layout instant diversification
    • In market crashes, the best way to survive and grow is to diversify your portfolio by investing in ETFs in indexes like the S&P 500, which includes firms from 11 different industries. The impact on one sector will have no effect on the stocks of firms in the other ten.
  • These are low maintenance investment
    • People who are new to investing and the stock market may find it challenging to find research data about dozens of stocks that provide a decent return on investment. S&P 500 ETFs may be the ideal option to invest your money if you don’t appreciate watching the financials of hundreds of firms or understanding their company and stakeholders.
    • But, you should keep in mind that these funds perform best when they are left alone for a longer period of time. So if you are looking for “invest once and forget it” S&P 500 ETFs could be a smart choice.


There are many options and investment strategies, S&P 500 ETF is one of those but you have to know your investing style. If you are an aggressive investor who is fine with high risk and looking for high returns and you may have to look towards growth funds and momentum investing. 

On the other hand, if you have just started investing you might want to have low-maintenance and stable investments depending on your age and risk appetite. 

Mohamed Hafiz
Investment Manager
Hafiz is a serial entrepreneur coming from the Engineering background and developed his Financial Services Career in Dubai. Have worked with multiple well stablished Brands in the financial Services in various Jurisdictions, and his passion of Business Development gave him an edge when it comes to Market-fit products creation.
Siddharth Bhan | Web Development Lead of Rama Vision

Siddharth Bhan

With his exceptional passion for technology and a deeper understanding of the current digital marketing trends, Siddharth has built a successful digital marketing agency from scratch.
He is assisting many startups in taking their business online, building a robust brand presence, and multiplying their income through tried and tested digital marketing strategies he has perfected over time.
He is leading the web development team making the user experience for Rama Vision Portal users better every day.
Khaled Guerbouz | Structured Products Advisor of Rama Vision

Khaled Guerbouz

Structured Products Advisor
A veteran in the Financial Services arena with more the 20 years of experience in the private banking sector between Switzerland, France and UAE.
Khalid brings sound of wisdom and profitability for clients when it comes to Structured Products and other Private banking advices.
Ahmed Mohsen | Big Data and Business Analysis Advisor of Rama Vision

Ahmed Mohsen

Big Data and Business Analysis Advisor
Ahmed Abdelwahab has worked in Software Engineering and Data Analytics Industry for 18 years.
Ahmed is the Big Data and Business Analysis Advisor of Rama Vision Portal, to collect, qualify, and mold data into an investment decision making panel.
The quality of Mr. Abdelwahab as an advisor is his passion to bring growth to unrevealed terrains.
As part of consulting in technology and business analysis, he has worked strategically to build up data governance platforms and supported government and private sectors to accomplish missions using bulk population.
Adnan Khan | Financial Technology Advisor Of Rama Vision

Adnan Khan

Financial Technology Advisor
A FinTech enthusiast and Expert with 18 years of experience in Financial Technology and Both Sell side and Both side Technology environments and setups.
Adnan Talks and walks the Fintech and forward thinking professional.
And when it comes to innovation and finding solutions; Impossible is not in his dictionary.
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Yaqoob Alhammadi Auditing

Accounting and Auditing
AY Chartered Accountants, is an accounting, auditing and tax advisory services firm established in the commercial hub of Dubai, UAE.
They are a group of Chartered Accountants, Certified Public Accountants and Information System Auditors led by a young and dynamic professional whose vision and passion is complemented by a team of qualified, well experienced and dedicated professionals
Shaikh Khaled Bin Humaid Al Qasimi | Co-Founder of Rama Vision

Shaikh Khaled

Being a member of the ruling family of Emirate of Sharjah is not the only cutting edge for Sh. Khaled.
He has an admirable Entrepreneurship spirit, open minded and proactive Individual.
Despite his busy schedule he still manages to follow-up on his portfolio and investments, adding value by profile and network exposure as well.
Mohamed Hafiz | CEO, Co-Founder of Rama Vision

Mohamed Hafiz

CEO, Co-founder
Hafiz is a serial entrepreneur coming from the Engineering background and developed his Financial Services Career in Dubai.
Didn`t take him long to observe the gap in the market and start venturing into Fintech Industry with specialty in MENA market.
Have worked with multiple well stablished Brands in the financial Services in various Jurisdictions, and his passion of Business Development gave him an edge when it comes to Market-fit products creation.