Tata AIA Life Insurance Introduces Multicap Momentum Quality Index Fund

Tata AIA Life Insurance Co. Ltd. has announced the launch of its Tata AIA Multicap Momentum Quality Index Fund, a new fund offer (NFO) designed to generate long-term capital appreciation. The NFO will be open for subscription from December 24, 2024, to December 31, 2024.

Investment Approach and Strategy

The fund adopts a systematic, factor-based investment that focuses on momentum and quality. It aims to replicate the Nifty 500 Multicap Momentum Quality, adhering to a rule-based, disciplined approach. 50 Index by investing across large-cap, mid-cap, and small-cap stocks. The portfolio’s asset allocation includes 80-100% in equity and equity-related instruments, with the remaining 0-20% in cash or money market instruments for liquidity management. 

Integration with ULIPs

The fund is available through Tata AIA’s Unit Linked Insurance Plans (ULIPs), including popular offerings like Tata AIA Param Raksha Solutions and Tata AIA Pro-Fit Plan. These plans combine market-linked wealth creation with life and health insurance coverage, catering to policyholders seeking a mix of growth and protection.

Performance Metrics

As of November 2024, Tata AIA Life’s Assets Under Management (AUM) stood at ₹1.17 lakh crore, showing a 35.91% year-over-year growth. The Multi-Cap Fund, one of its existing offerings, has delivered a 28.22% compound annual growth rate (CAGR) over the last five years.

High-Risk Profile

The Multicap Momentum Quality Index Fund is categorised as a high-risk investment, suitable for investors with long-term financial goals and a higher risk tolerance.

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.