• The fund will invest in top-performing stocks that are part of the Nifty Alpha 50 Index
• In addition to the market-linked returns, consumers benefit from life cover and health & wellness benefits.

MUMBAI: Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurers, has introduced 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.

Why consumers should invest in the NIFTY Alpha Index Fund:

• 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, Harshad Patil, Executive Vice President, and Chief Investment Officer (CIO) of Tata AIA 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. 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.“

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 much-needed life and health insurance coverage.

Tata AIA has built a strong track record with its funds outperforming the respective benchmarks over multiple periods. According to Morningstar^, a global rating platform, Tata AIA Life has 95.55% of its Assets Under Management (AUM) rated as 4 or 5 stars as of July 2024. This indicates the quality of the investment process which has helped deliver fund performance across a wide range of funds. For instance, the Multi Cap Fund has given CAGR return of 31.23% over the past five years versus a benchmark return of 20.10% and 23.24% since inception versus a benchmark return of 14.79% as of 31st July 2024.

Benchmark Beating Performance of Tata AIA Funds:

*Data as of July 31, 2024. Past performance is not indicative of future performance.                                                       

Fund Benchmark: Multi Cap Fund, India Consumption Fund, Top 200 Fund: S&P BSE 200.                                                

**Inception Dates: Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 05 Oct 2015, India Consumption Fund: 05 Oct 2015.

^ © 2024 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from data published on various dates and procured from various sources and (5) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates, or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.       

++ Param Rakshak Series which comprises of Tata AIA Life Insurance Smart Sampoorna Raksha – A Non-participating, Unit Linked, Individual Life Insurance Savings Plan (UIN:110L156V04) and Tata AIA Vitality Protect Plus – A Non-linked, Non-participating, Individual Health Rider (UIN: 110A048V03) OR Tata AIA Smart Sampoorna Raksha Pro, A Non-participating, Unit Linked Individual Life Insurance Savings Plan (UIN: 110L172V02) and Tata AIA Vitality Protect Plus, A Non-linked, Non-participating, Individual Health Rider (UIN: 110A048V03)

+++ Tata AIA Pro-Fit plan which comprises Tata AIA Smart Health, A Non-Participating, Unit-linked Individual Health Insurance Plan (UIN: 110L168V03), Tata AIA Sampoorna Health, A Non-Linked, Non- Participating Individual Health rider (UIN: 110A167V02) & Tata AIA OPD Care, A Linked, Non-Participating Individual Health rider (UIN: 110A166V02).

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MUMBAI: YES BANK, India’s sixth-largest private sector bank, has achieved a notable 20.9% year-on-year (Y-o-Y) growth in total deposits, reaching INR 2,65,072 crore as of Q1FY25. This significant growth reflects the strong trust and confidence that customers place in the Bank, emphasizing the successful turnaround that the Bank has scripted in the last four years. It also highlights the solid financial foundation and customer-focused strategies, that the Bank has implemented.

Amidst a challenging environment where the banking industry faces the task of balancing deposit growth with increasing credit demand, YES BANK has not only kept pace but has exceeded industry averages. This success aligns with the broader industry’s focus on deposit growth, as emphasized by recent regulatory guidance aimed at bolstering the financial resilience of the banking sector.

A key driver of YES BANK’s success has been its strategic emphasis on enhancing its low-cost deposit base. The Bank has seen a substantial improvement in its CASA (Current Account Savings Account) ratio, which increased to 30.8% in Q1FY25 from 29.4% in the same quarter of the previous year. This improvement is the result of the Bank’s focus on granular CASA deposits, leading to the addition of approximately 17 lakh new CASA accounts during FY2023-24. A 23% increase in CASA balances further strengthens the Bank’s low-cost deposit base, showcasing the effectiveness of its customer acquisition and retention efforts.

This strong performance is also supported by strategic investments in expanding the Bank’s distribution network. In FY2023-24, YES BANK opened 133 new branches in CASA-rich clusters, bringing its total to 1,453 outlets across various states and union territories. This expansion has allowed the Bank to offer a broad range of financial products, deepening customer engagement and driving deposit growth. As a result, the Bank has achieved a Compound Annual Growth Rate (CAGR) of 22.3% in branch banking-led deposits over the past two years, significantly outpacing the industry average of 11.9% and the 17.4% CAGR among private banks.

The Bank’s outperformance in deposit growth can be attributed to three key factors:

• Productivity Gains: Enhancing efficiencies within its existing and expanding franchise
• Acceleration in Customer Acquisition: A strong focus on acquiring high-value customers
• Rise in New Acquisition Value (NAV): Improving the quality and value of the deposit base

As YES BANK continues to build on this momentum, its focus remains on sustaining this growth by deepening customer relationships, expanding its product offerings, and ensuring that its deposit growth strategy stays aligned with evolving regulatory requirements and market conditions.

Looking ahead, this impressive deposit growth positions YES BANK for enhanced financial stability, increased lending capacity, and improved profitability will be the key drivers that will enable the Bank to capitalize on emerging opportunities and further strengthen its market presence in the years to come.

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