BSE Insurance Index Launched by Asia Index
Why in the news
A new sector benchmark now tracks how India’s listed insurers perform.
Key facts
- Launcher: Asia Index Pvt Ltd, a joint venture of BSE Ltd and S&P Dow Jones Indices.
- Members: insurers from the BSE 1000 Index.
- Single-stock weight capped at 25% to limit concentration risk.
- Reviewed semi-annually, June and December.
Uses
- Basis for passive products such as ETFs and index funds, and a yardstick for portfolios.
Significance
- Improves visibility of insurers and widens sector-specific investing.
Exam angle
- Index: BSE Insurance Index; weight cap 25%.