Future Generali Life's fund management philosophy

The only certain thing about life is its uncertainty. Unforeseen circumstances can lead your family’s financial security under threat, and therefore it is in your best interest to invest a sum, no matter how small, in instruments that can safeguard your financial autonomy. Life insurance policies are one of the most important investments that we leave behind for our loved ones. Death, however unwanted, is inevitable and therefore ensuring the financial autonomy and quality of life for your family members when you’re gone is of paramount importance to you. Future Generali India Life Insurance understands this and our primary focus in on ensuring safety, liquidity and sustainable returns on your valued investment.

Future Generali India Life Insurance Company Limited is a joint venture between three leading groups: Future Group – A leading retailer in India, Generali Group- A global insurance group that features among top 50* smartest companies in the world.

With the mission to actively protect and enhance peoples’ lives, it operates across 104 branches offering a range of simplified solutions for the financial security of customers and enterprises.

At Future Generali Life, the investment philosophy envisages a disciplined risk management that assures you that your hard-earned money is in safe hands. The investments are made in a structured manner employing only the best practices.

The fund managers strive to provide you with superior risk adjusted returns so that you can realize all the long-term goals you have set for your corpus.

In order to safeguard the interests of the investor, Future Generali has a board-approved investment policy in line with the IRDA guidelines. The fund management team is well-versed with latest research findings and data that help them to devise risk control measures that optimize the returns on your investments.

Now, let us look at Future Generali Life’s fund management strategy and philosophy in some more detail:

Broadly speaking, the fund management at Future Generali Life Insurance comprises a three-tier structure:

  • Investment Committee (Headed by Chairman, Shri G. N. Bajpai, Ex-Chairman LIC & SEBI)
  • Investment Sub - Committee (Headed by MD & CEO, Mr. Munish Sharda)
  • Investment Team (Front, Middle, and Back Office)

Now, let’s look at the investment strategy closely:

Investment in fixed income instruments: The fund management team takes care of your investments in fixed income instruments after duly analysing the global and domestic macroeconomic variables. These may include factors like inflation, interest rate outlook, fiscal deficit, current liquidity scenario, etc. Moreover, the team also looks at specific parameters such as your credit profile, interest coverage ratio and duration for which you want to lock in your corpus. Future Generali Life actively participates in both primary and secondary markets for government securities and corporate bonds.

A testament to Future Generali Life’s fund management philosophy is that there are no NPAs (non-performing assets in its portfolio.

Investing in equity instruments: Equity investments require a comprehensive understanding about the company and its operations in order to gauge and safely predict its potential and performance in the future. In a nutshell, following are the broad parameters for investment in equity:

  • The shares should be actively traded.
  • The company should have a good management track record and growth prospects.
  • The company should demonstrate a strong and sustainable business model.
  • The company should have a strong net worth.
  • Investment in equity will be done after detailed analysis of the promoter's business, profitability and market outlook.

Future Generali Life invests primarily in Nifty stocks and the allocation to non-Nifty stocks is done only in companies that reflect a sound fundamental growth story or corporate actions e.g. buybacks, bonus, dividend etc. Also, investments in primary market issues (IPO/FPO) are made only after analysing prospects of gain over long term.

Future Generali Life’s core investment strategy involves a top-down approach for asset allocation and sectoral exposure. On the other hand, it follows a bottom-up approach for selection of stocks within the identified sectors. To understand what these two approaches encompass, just remember that in the top-down approach, the fund management team looks at factors like the growth of economy, inflation, interest rate scenario, stability in foreign exchange, government/private borrowing and fiscal & current account deficit. Meanwhile, in a bottom up approach, the primary focus of fund managers is on factors like company's expected rate of growth, its profitability, debt-equity ratio, market share and corporate governance.