Question :
Can we create Indexes on a view in SQL Server 2008? I have heard about indexed view, which can give performance improvement, but the problem is data refresh on those views: Can it be auto updated, once data in base tables changes?
Answer :
Indexed views are always in sync with the data in the underlying tables. You can read more about indexed views here.
Be careful going overly enthusiastic with indexed views: they can be a real performance killer on heavily written tables.