Image: Binay Sinha
Tata AIA Life Insurance Co. Ltd. (Tata AIA) launched the fund as part of its unit linked insurance. Tata AIA NIFTY Alpha 50 Index Fund will invest in stocks comprising the Nifty Alpha 50 Index, focusing on delivering market-linked returns and life cover and health and wellness benefits.
The new fund offer (NFO) is open till September 30, with units having a NAV of Rs 10 at the time of the offer. The NFO is designed to offer policyholders “a unique opportunity to protect their loved ones while they can benefit from the growth of high-performing stocks”, Tata AIA said in a statement.
Investment strategy
Tata AIA NIFTY Alpha 50 Index Fund is a multi-asset investment vehicle that allows policyholders to gain exposure to high performing stocks. By multiplying the performance of NSE-listed stocks, the fund offers policyholders high return opportunities by focusing on outperforming stocks.
The fund will allocate 80 to 100 percent of its assets to equity and equity-related instruments, with the remaining 0-20 percent invested in cash and money market securities. This strategic allocation ensures a balanced approach to risk and return for policyholders.
“As the Indian economy grows exponentially over the next few decades, the Indian equity market presents significant opportunities for wealth creation. Policyholders can capture market trends effectively by focusing on stocks that perform well in all aspects of the market. With the Tata AIA NIFTY Alpha 50 Index Fund, consumers can look forward to exciting investment opportunities and a fikar-free life,” said Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA.
Policyholders can invest in the NIFTY Alpha 50 Index Fund through Tata AIA’s popular unit-linked insurance schemes, including the Tata AIA Param Rakshak (PR) ++ series and the Tata AIA Pro-Fit+++ scheme. These schemes not only provide long-term growth potential through equity investments but also valuable life and health insurance for consumers and their families.
The company gave reasons to investors in NIFTY Alpha Index Fund in a press release:
It is a multi-market linked investment fund, which allows policyholders to gain exposure to high-performing stocks belonging to different market segments.
It will replicate the performance of NSE listed stocks and generate high alpha. This will allow policyholders the opportunity to earn higher returns if the focus is on stocks that outperform the benchmark.
According to Morningstar, as of July 2024, 95.55 percent of Tata AIA’s Assets Under Management (AUM) are rated as 4 or 5 stars. This performance is evidenced by the Multi Cap Fund, which has achieved a compound annual growth rate return (CAGR) of 31.23 percent over the past five years, significantly exceeding its average return of 20.10 percent.
First published: Sep 24 2024 | 3:41 PM IST