A method for the construction of a new type of stock market index, and stock market index fund, or funds. The method is distinct from other types of stock market indices in that the index is constructed based upon the fundamental realities of the companies contained within the index rather than on the price, or market capitalization of the companies contained with the index. This fundamental data would include items such as the relative size of a collection of company's profits or assets or any fundamental accounting data contained within a standard U.K company annual report and accounts. A stock market index based upon the fundamentals of the companies within it, rather than on their price, or market capitalization, may provide a more stable and rational method for investing in a passive manner over the medium or longer term.
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