As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind like protection for the family in case of death of family member, child education and marriage liabilities or just investment returns over a longer period of time.
With the above in mind, our investment focus is based on the primary objective of protecting and generating good and consistent investment returns to match the investor’s long term objective and return expectations.
Our investment success is therefore based on teamwork guided by a robust and repeatable investment process.
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We are an active manager, with the belief that over the medium and longer term, we will be able to outperform the benchmark, which will in turn benefit our policyholders.
High quality research is therefore key to achieving this out-performance. While an individual stock or sector or asset class can be influenced by sentiment, liquidity or other such factors in the short term, over the long term market prices are based on “fundamental values”. For this reason, we follow an investment process that is based on the fundamental evaluation of each individual security. We have access to the best internal and external data available and are always looking for new sources of high quality information.
The Investment Committee of HDFC Standard Life comprises top management of HDFC Group and HDFC Standard Life and plays a pivotal role in defining long term investment policies, strategic asset allocation and monitoring the Investment team performance on a continuous basis.
The Investment decision making process is defined and has clear responsibilities and discretion articulated at various levels. Key elements to the investment process include asset allocation, stock selection, portfolio construction, risk management and dealing.
Risk Management
Risk management is a critical function in the Investment process and is monitored at multiple levels like Fund risk, Operational Risk, Market Risk and Stock / Instrument Specific Risk. We also believe that discipline is critical in managing funds over a longer tenure. We have therefore set different benchmarks for the funds we manage and fund performance is closely monitored against the set benchmarks. We strive to generate higher risk-adjusted returns over a longer period of time.
To sum up, our endeavor is to generate for our policyholders, consistent, risk-adjusted returns in a disciplined and repeatable manner with the aim of beating the defined benchmarks by active fund management.
