tailieunhanh - Risk assessment and quantification of wealthsurance equity growth fund of IDBI federal life insurance

This paper includes both qualitative and quantitative research. The former uses a survey, face-to-face discussions and telephonic interviews on study sample which helped to decipher the demographics and the financial needs of the clientele. | Risk assessment and quantification of wealthsurance equity growth fund of IDBI federal life insurance International Journal of Management IJM Volume 10 Issue 4 July-August 2019 pp. 44 67 Article ID IJM_10_04_006 Available online at http ijm JType IJM amp VType 10 amp IType 4 Journal Impact Factor 2019 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication RISK ASSESSMENT AND QUANTIFICATION OF WEALTHSURANCE EQUITY GROWTH FUND OF IDBI FEDERAL LIFE INSURANCE Abhishek Halder Indian Institute of Management Ahmedabad India ABSTRACT The objective of risk management is not to prohibit or prevent risk taking activity but to ensure that the risks are consciously taken with full knowledge clear purpose and thorough understanding so that it can be measured and mitigated. It also prevents an institution from suffering unacceptable loss causing it to fail or materially damage its competitive position. Balancing risk and return is not an easy task as risk is subjective and not quantifiable whereas return is objective and measurable. This paper includes both qualitative and quantitative research. The former uses a survey face-to- face discussions and telephonic interviews on study sample which helped to decipher the demographics and the financial needs of the clientele. The latter uses empirical data sources to gauge the risks associated with a unit-linked insurance plan ULIP wealthsurance equity growth fund of IDBI federal life insurance based on risk parameters. A regression analysis is performed on the 5 year monthly historical data of portfolio returns of wealthsurance equity growth fund of IDBI federal life insurance and market returns. The findings suggest that the portfolio returns are almost independent of market returns thereby involving a high amount of risk for the fund managers to take to provide better returns. To conclude if insurance industry has to do well in India it has to reconfigure