BSE Index Services, a wholly-owned subsidiary of BSE Ltd, announced the launch of the BSE Housing Finance Index on Monday. According to reports from ET Now and The Economic Times, the newly launched index is derived from constituents of the BSE 1,000 Index that are classified under housing finance as a basic industry. The index has a base value of 1,000 with June 22, 2015 set as the base date, as reported by The Economic Times. It will be reconstituted semi-annually in June and December, as per PTI reports, in line with standard index review practices.
The BSE Housing Finance Index comprises 11 constituents with specific weightage allocations. As reported by The Economic Times, LIC Housing Finance holds the highest weight of 17.16%, while Aadhar Housing Finance carries the lowest weight of 3.89%. Other major constituents include PNB Housing Finance, Sammaan Capital, Home First Finance Company, Bajaj Housing Finance, Aptus Value Housing Finance, Can Fin Homes, AAVAS Financiers, and India Shelter Finance Corporation. The index's total returns over a one-year period stands at negative 12.84% according to BSE Index Services, indicating the sector's performance during this period.
The BSE Housing Finance Index is designed to support passive investment strategies such as exchange-traded funds (ETFs) and index funds, as reported by ET Now. It can also serve as a benchmark for portfolio management services (PMS), mutual fund schemes, and other investment portfolios. With this sector-specific index introduction, investors will be able to access a broader spectrum of market opportunities and diversify their investment strategies, according to BSE Index Services. As reported by The Economic Times, the index aims to provide investors with a more focused lens to track housing finance companies, enabling better participation in sector-specific growth opportunities.
The launch of this sector-specific index enables ETFs, index funds, PMS benchmarking and broader investor diversification, as reported by ET Now and The Economic Times. This development provides investors with a dedicated tool to track the performance of companies engaged in the housing finance segment, offering a focused investment approach for those interested in the housing finance sector. The index also adds to BSE's expanding suite of indices, offering broader tools for portfolio diversification and strategy development, as noted by The Economic Times.
