Enabling long-term life coverage with the potential for growth by investing in unit-linked insurance plans
- 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:
| Last 5 Years Returns* (CAGR) | ||
| Tata AIA Funds | Fund Return (%) * | Benchmark Return (%) * |
| Multi Cap Fund | 31.23% | 20.10% |
| Top 200 Fund | 31.25% | 20.10% |
| India Consumption Fund | 30.54% | 20.10% |
*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.
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++ 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).
