Relationship of Max Financial Services Limited with nifty
Author: Mayuri Rajendra Jadhav
Introduction:
Max Financial Services Limited is an India-based company, which operates as a holding company for Max Life Insurance Company Limited. The Company is engaged in the business of investments and providing management advisory services. The Company’s segments include Life Insurance and Business Investments. The Company’s investor base includes global financial institutions such as KKR, Baron, and Ward ferry, New York Life, Vanguard, Blackrock, Jupiter, Norse’s, Neuberger Burman, East spring and Dimension. Max Life offers comprehensive protection and long-term savings life insurance solutions, through its multi-channel distribution including agency and third-party distribution.
Objective:
To calculate beta of Max Financial Services Limited and observe its significance
Views and reviews:
1. Analjit Singh Founder & Chairman
The conclusion of our joint venture with Axis Bank, the third largest bank in India, in April, this year, once again proved our mettle in forging long-standing partnerships and business responsibilities that pave the way for a tactical and strategic edge over our peers in a highly competitive sector.
2. Mohit Talwar Managing Director
Max Life was ranked #1 in customer loyalty (based on the annual syndicated survey of policyholders by Kantar) and ranked 2nd in customer grievances incidence rate (Q3 public disclosures), with decade low miss-selling count and incidence rate.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Max Financial Services Limited were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
Equation y= -0.089+0.488x+e
(Max Financial Services Limited = -0.089+0.488 Nifty 50 + e)
T stat for b = 1.2688
R2 = 0.032
F=1.6099
The above equation do not show any relationship between nifty 50 (X) and Max financial services limited (Y). Max Financial Services Limited runs on own fundamentals the t stat for b is 1.2688 not statistically significant at 5 % level, R2is 0.032 which means 3.2% Y is explained by X. 96.8% is the error in model. 1.6099 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Max Financial Services Limited Is < 1 So The Company Is Good For Long Term Investment.