The Hindu Business Line : Birla Sun Life, Crisil plan benchmark indices for ULIPs

BIRLA Sun Life Insurance (BSLI) in association with Crisil has announced the launch of new benchmark services to provide investors with a yardstick to measure the performance of funds.

Mr Nani Javeri, CEO, BSLI, said: "The new benchmark indices will help customers evaluate the performance of our funds vis-à-vis the markets in an unbiased and informed manner".

Given the slew of unit-linked products that combine investment and risk cover, fund performance is of key significance to policyholders.

BSLI will disseminate their performance against Crisil indices in its factsheets.

BSLI has requested Crisil as a neutral third party to conceptualise and construct such benchmarks that would be relevant and transparent to this emerging industry and aid investors to measure the performance of various unit-linked insurance plans

Mr D. Ravishankar, Executive Director and CFO, Crisil, said: "This will enable transparent communication to the investors. Such benchmarks can help initiate healthy competition in the insurance industry by adopting uniform valuation and benchmarking standards. This would help in the ultimate objective of creating better value for investor money."

In constructing these indices, Crisil has considered the investment philosophies and objectives of the different schemes, the asset composition across asset categories and a relevant benchmark for equity investments, the average duration of the scheme portfolio and the interest rate risk management policy defined by the investment committee.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
UTI Grandmaster to take new avatar

Birla Sun Life, Crisil plan benchmark indices for ULIPs

Bear-run arrested

Trent hits new high on growth prospects

Block deal in HDFC Bank

Cash flow hopes draw interest in ONGC

Outlook may turn positive for Maruti, BHEL

Mid-caps, small-caps continue to thrive