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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65334
Volume:
10 |
6 |
Jun 2026
Pages:
1-8
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
MBA
MLR Institute of technology
MBA
MLR Institute of technology
This study examines the risk-return characteristics of investment-linked insurance portfolios managed by Novo Insurance & Brokerage Pvt Ltd, an unlisted private insurance brokerage operating in the Indian market. Using five years of secondary portfolio data (2021–2026) across Equity, Balanced, and Debt portfolio categories, the study applies Mean Return, Standard Deviation, Beta, Sharpe Ratio, Treynor Ratio, correlation, and regression analysis to evaluate portfolio performance and risk-adjusted efficiency. A structured survey of 150 clients (120 retail, 30 corporate) was used to assess the relationship between client demographics and risk appetite. Results indicate that the Equity Portfolio delivered the highest mean return (18–22%) accompanied by the highest volatility (Standard Deviation ≈ 5.2, Beta = 1.25), while the Debt Portfolio offered the lowest risk (Standard Deviation ≈ 1.1, Beta = 0.58) with stable but modest returns. The Equity Portfolio also recorded the highest Sharpe Ratio (1.20) and Treynor Ratio (9.6), confirming superior risk-adjusted performance despite higher absolute volatility. Negative correlation between Equity and Debt (–0.25) confirmed diversification benefits within the firm's recommended asset mix. Client survey data revealed a statistically observable inverse relationship between client age and risk appetite, with younger clients (20–30 years) favouring aggressive allocations and clients above 50 years strongly preferring conservative instruments. The study concludes that Novo Insurance & Brokerage Pvt Ltd maintains a balanced and statistically sound advisory framework, and recommends strengthening AI-based portfolio analytics, quarterly portfolio reviews, and age-segmented product customization to further improve client outcomes.
KEYWORDS
This study set out to analyze the historical risk and return of Novo Insurance & Brokerage Pvt Ltd's recommended investment portfolios, to compare their risk-adjusted performance, and to examine the relationship between client demographics and risk appetite. The evidence shows that the firm's three-tier portfolio structure — Equity, Balanced, and Debt — produces a statistically coherent and well-differentiated risk-return spectrum: Equity offers the highest return and the highest risk-adjusted efficiency; Debt offers capital stability at the cost of return; and the negative correlation between the two confirms genuine diversification value when combined. The client survey findings further confirm that risk appetite is not uniform across Novo's client base but varies systematically with age, reinforcing the need for personalized, demographically-informed advisory practice. Taken together, the findings validate Novo Insurance & Brokerage Pvt Ltd's existing advisory framework as statistically sound while identifying concrete opportunities — AI-driven analytics, quarterly reviews, and age-segmented product design — for the firm to strengthen its risk-adjusted advisory services and long-term client outcomes in an increasingly volatile and competitive Indian insurance brokerage market.
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Publication Date
6/24/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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