The Optimal Portfolio of AIA Group Limiteds Investment Insurance Products Based on Markowitz Model and Index Model

Abstract

This paper uses the Markowitz and Index models to look for the optimal portfolio of AIA Group Limiteds Investment Insurance Products. While most of the previous articles concerning these two models only studied theoretically, the research object of this paper is more practical and instructive. First, this papers study method is to collect ten AIA investment insurance products revenue data from 2018 to 2023 from its website. Then, process the data, such as calculating the mean, variance, etc. Markowitz and Index Model are built on the basis of these data. The constraints are then introduced to find the optimal portfolio under different conditions. After comparison, it concludes that the Index Model analyzes the risk, while the Markowitz Model portfolio has the potential to yield higher returns than the Index Model portfolio when both are subject to the same level of risk. This research is instructive for investors finding the most suitable portfolio with the highest return and AIA developing new portfolio insurance products.