The newly introduced index draws its constituents from the broader BSE 1000 index, specifically those classified under the housing finance segment as per basic industry categorisation.
The index has a base value of 1,000, with June 22, 2015 set as the base date. It will be reconstituted semi-annually in June and December, in line with standard index review practices.
The BSE Housing Finance Index is designed to support a wide range of investment applications. It can serve as an underlying benchmark for passive investment products such as ETFs and index funds, while also being used by portfolio managers for benchmarking PMS strategies and mutual fund schemes.
With this launch, BSE aims to provide investors with a more focused lens to track housing finance companies, enabling better participation in sector-specific growth opportunities. The index also adds to BSE’s expanding suite of indices, offering broader tools for portfolio diversification and strategy development.
BSE Index Services Pvt. Ltd. is a wholly owned arm of BSE Ltd and was formerly known as Asia Index Pvt. Ltd. It is responsible for designing, calculating and maintaining a wide array of indices. As part of BSE — Asia’s oldest stock exchange and home to the benchmark Sensex — the subsidiary continues to expand its offerings for both domestic and global.
Its total returns over a one-year period stands at negative 12.84% according to a media release issued by BSE Index Services. There are 11 constituents in the index viz. LIC Housing Finance, PNB Housing Finance, Sammaan Capital, Home First Finance Company, Bajaj Housing Finance, Aptus Value Housing Finance, Can Fin Homes, Aadhar Housing Finance, AAVAS Financiers and India Shelter Finance Corporation.The highest weight of 17.16% is carried by LIC Housing Finance while the lowest by 3.89%.
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