Investment Process and Risk Management
Aviva’s investment process is build around extensive research and strong risk control measures. Aviva’s investment process has strict investment guidelines to ensure that we contain portfolio risk and run a diversified portfolio. All investments are made after thorough and rigorous in house research based approach. The company is committed to adopt and maintain good fund management practices and a process based investment management.
Aviva’s investment universe is governed by the stringent investment guidelines prescribed by IRDA. In addition to that, Aviva has in house prudent investment policies, which always ensures safety and stability of the investments.
Aviva also has an integrated dealing system, which is used by Front office, Middle office & Back office to track dealing and exposure management. This system helps tracking the various exposure norms as prescribed by IRDA as well as internal guidelines.
The investment decision process has multiple layers of checks which is guided by Board of Directors and then implemented by Investment Committee, which allows CIO & Fund managers to operate within approved limits.
Discipline is critical for managing funds over a longer tenure. We have, therefore, set different benchmarks for our funds, closely monitoring their performance against these benchmarks to ensure consistent returns over the long-term. Our aim is to provide higher returns than the benchmarks. On the fixed income segment, we have delegated CRISIL to design composite benchmark indices, reflective of the asset allocations of all our funds. These benchmarks are usually composite indices compiled by CRISIL and include the CRISIL Composite Bond Fund Index, CRISIL Liquid Fund Index. In case of equity segment, the CNX Nifty Index is the key performance benchmark for most funds