Tata AIA Life Insurance Co. Ltd. (Tata AIA), has introduced the Tata AIA NIFTY Alpha 50 Index Fund through its unit-linked insurance products, which is an open-ended New Fund Offering (NFO) with an alpha investing strategy to benefit from potential growth while securing their loved ones with the protection of a life insurance cover.
The NFO will remain open until September 30th, 2024, with units offered at an NAV of Rs. 10 per unit during the NFO period. The fund will focus on high-performing stocks (i.e.) the top 50 performing stocks that constitute the Nifty Alpha 50 index.
It is a multi-cap market-linked investment fund, enabling policyholders to take exposure to high-performing stocks that are part of different market cap segments.
It will replicate the performance of stocks listed on the NSE and generate high alpha. This will allow policyholders the opportunity to earn higher returns given the focus on benchmark-beating stocks.
The fund will invest 80%- 100% in Equity and Equity-related instruments, and 0%-20% in Cash and Money Market Securities. This will ensure a reasonable balance between returns and risk for the policyholders.
Commenting on the launch Tata AIA Vice President, and Chief Investment Officer Harshad Patil, said, “With India’s economy expanding multifold over the next few decades, the Indian equity market presents significant wealth creation opportunities. As a result, businesses will be able to grow their revenues, multiply their earnings, and provide policyholders with sustained returns.”
He also said that with Tata AIA NIFTY Alpha 50 Index Fund, our policyholders can capture market trends effectively by focusing on high performing stocks across market caps. We can thus provide consumers with long-term returns, apart from life cover and health benefits offered by our investment linked solutions. The fund will help the consumers to look forward to an exciting investment opportunity and a fikar-free life.
Tata AIA policyholders can invest in the NIFTY Alpha 50 Index Fund through the company’s innovative Unit Linked Insurance Plans available under its popular Tata AIA Param Rakshak (PR) ++ series and Tata AIA Pro-Fit plan +++. These solutions offer long-term growth potential of equity investments while securing consumers and their families with the much-needed life and health insurance covers.
