Tata AIA Unveils NIFTY Alpha 50 Index Fund with Life Insurance Benefits

Tata AIA Life Insurance has officially launched the Tata AIA NIFTY Alpha 50 Index Fund, a new open-ended New Fund Offering (NFO) designed to combine investment potential with life insurance protection. This fund features an alpha investing strategy, allowing investors to benefit from anticipated growth while securing their loved ones through unit-linked insurance products. 

The NFO is currently open for subscription and will close on September 30, with units priced at an NAV of ₹10 each during the offering period. The fund targets the top 50 performing stocks of the Nifty Alpha 50 index, providing a focused approach to investing in high-performance equities.

As a multi-cap market-linked investment fund, the Tata AIA NIFTY Alpha 50 Index Fund enables policyholders to gain exposure to high-performing stocks across various market capitalisation segments. By aiming to replicate the performance of stocks listed on the NSE, the fund seeks to generate high alpha, offering policyholders the opportunity for superior returns by focusing on benchmark-beating stocks.

The main investment objective of the fund is to generate capital appreciation in the long term by investing in a portfolio of stocks indexed to the Nifty Alpha 50 Index.

The investment strategy allocates 80%-100% in equity and equity-related instruments, with 0%-20% in cash and money market securities, ensuring a balanced approach between risk and returns. 

Policyholders can invest in this fund through Tata AIA’s innovative Unit Linked Insurance Plans, available under its Tata AIA Param Rakshak (PR) ++ series and Tata AIA Pro-Fit plan+++. These solutions not only provide long-term growth potential through equity investments but also offer essential life and health insurance coverage for consumers and their families.

The fund management charges are 1.35% per annum. Individuals looking for a comprehensive solution that combines life coverage with long-term investment opportunities may consider the Tata AIA Nifty Alpha 50 Index Fund. This fund is especially suitable for investors with a high-risk tolerance.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.