Tata AIA Life Insurance has launched the Tata AIA Nifty Alpha 50 Index Fund, 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, through its unit-linked insurance products.
The NFO is open for subscription with units offered at an NAV of INR10 per unit during the NFO period.
The fund will focus on high performing stocks ie, the top 50 performing stocks that constitute the Nifty Alpha 50 index.
The fund is a multi-cap market-linked investment fund, enabling policyholders to take exposure in high-performing stocks that are part of different market cap segments. It will replicate the performance of stocks listed on NSE and generate high alpha. This will allow policyholders with 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.
"With India's economy expanding multi-fold 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,” said Mr Harshad Patil, Executive Vice President, and Chief Investment Officer (CIO) of Tata AIA.
“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. With Tata AIA Nifty Alpha 50 Index fund, our consumers can look forward to an exciting investment opportunity and a fikar-free life,” he added.
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.
The NFO will close for subscription on 30 September.