A rise in new insurance premiums

In the first four months of the current financial year, first-year premiums for private life insurance companies grew by 26.9% to Rs.22,039.8 crore against Rs.17,369.3 crore, according to IRDAI data. In July 2019, total new premium income of private sector players grew by 15% to Rs.6,197.4 crore. Market participants say that growth in insurance was largely due to the surge in group business and individual single premium business in the April-July period. 

The Insurance Tracker smallcase comprises listed insurance companies to allow investors to efficiently track and invest in the insurance sector.  

Companies that can stand the test of time

“Quality investing” is an investment strategy that seeks to invest in good quality companies. The strategy is implemented by screening for companies that match specific fundamental criteria that indicate the quality of the company.  Such companies are considered to have superior business models and sustainable edge against competitors. Investing in quality companies can help portfolio returns especially when market conditions are not benign.       

The Quality – Smart Beta smallcase provides investors an opportunity to invest in high quality businesses. The smallcase picks its constituents from top 150 market cap stocks listed on NSE. Criteria like earnings variability, return on equity,  gearing ratio etc. are used to select consistent performers. A mathematical model is used to come up with portfolio weights, that seeks to maximize returns while reducing volatility.      

The smallcase has returned 76.6% returns over the past 5 years compared to Nifty returns of 40.1%.

Markets update

Weak global and domestic cues pulled benchmark indices down this week. Nifty closed down 0.56% at 11,047.8 and Sensex closed up 0.62% at 37,350.33.  

Consumer inflation rate during July 2019 increased by 3.15%, compared to the same period last year, against street estimates of 3.3%. Wholesale price index for the same period gained by 1.08% below street estimate of 2.0%. 

India’s exports grew by 2.25% to $26.33 bn  in July compared to the same period last year. Trade deficit also narrowed to a 4 month low of $13.43 bn.  

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— smallcase (@smallcaseHQ) August 14, 2019