The BSE Insurance Index is designed to reflect the performance of listed insurance companies and includes firms from the insurance sector within the BSE 1000 universe. Index constituents are weighted based on free-float market capitalisation, with an individual stock weight capped at 25%. The index is reviewed and rebalanced twice a year, in June and December.
According to ICICI Prudential Mutual Fund, India’s insurance sector has expanded at a compound annual growth rate (CAGR) of 17% over the past two decades. The fund house also highlighted the government’s decision to raise the foreign direct investment (FDI) limit in insurance companies from 74% to 100%, along with relatively low valuations, low insurance penetration and increasing demand, as factors supporting the sector’s long-term growth potential. It also noted that the index’s price-to-earnings (PE) ratio is trading below its five-year historical average.
Commenting on the launch, Chintan Haria, Principal – Investment Strategy at ICICI Prudential AMC, said rising incomes, higher financial awareness, growing healthcare needs, regulatory reforms and the government’s ‘Insurance for All by 2047’ vision are expanding opportunities for the insurance industry. He added that India’s insurance penetration remains below global levels, indicating scope for further growth.
The scheme has no exit load. During the NFO, the minimum application amount is ₹1,000 and in multiples of ₹1 thereafter. Post allotment, investors can buy or sell units on stock exchanges in lots of one unit, while authorised participants and investors can transact directly with the fund in creation units of 2,20,000 units. The scheme’s benchmark is the BSE Insurance Index and it will be managed by Nishit Patel, Ashwini Bharucha and Venus Ahuja.
