BSE 500 Quality 50 Index Pension Fund

Note: BSE 500 Quality 50 Index Pension Fund will be available along with Bajaj Life Smart Pension.

Bajaj Life Smart Pension with underlying BSE 500 Quality 50 Index Pension Fund, enables policyholders to achieve their life goals, powered by the security of a life cover and the opportunity for wealth creation.

SFIN No: ULIF011306/02/26B500Q50IPF116

 

Introduction

1.The BSE 500 Quality 50 index measures the performance of the 50 highest quality companies in the BSE 500, based on their quality scores. Constituents are weighted by the product of their quality score and float-adjusted market capitalization.

2.Constituent Selection –

1. Companies satisfying the eligibility criteria are ranked based on their quality scores.
2. If the underlying earnings per share (“EPS”) or book value per share (“BVPS”) for a given stock’s return on equity (“ROE”) is negative, a quality score is calculated but the stock is ineligible for index inclusion. 
3. The top 30 companies (whether a current constituent or not) are selected for direct index inclusion. Existing constituents which are within ranked 31-70 are selected in order of highest rank until the target constituent count of 50 is reached.
4. If, after this step, the target constituent count is not achieved, then non-constituents are selected in order of highest rank until the target constituent count is reached.

3.Each company is weighted by the product of its float-adjusted market capitalization weight in the eligible index universe and quality score, subject to security and sector constraints.

4.This is done using an optimization procedure that chooses final weights subject to the following constraints:

1. The maximum weight of each security is the lower of 4% and 20 times its float-adjusted market capitalization weight in the eligible index universe,
2. The maximum weight of any given common India Industry Classification Structure macro-economic indicator is 30%.

5.Index Rebalancing - The index will be rebalanced quarterly, effective as of market open on the Monday following the third Friday of March, June, September and December, respectively.