Tata AIA launches NIFTY Alpha 50 Index Fund with its Unit Linked Insurance Products

BILKULONLINE

Mumbai, Sept 24: 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 in high performing stocks that are part of different market cap segments.
• It will replicate the performance of stocks listed on NSE and generating 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.

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 the much needed life and health insurance covers.

Tata AIA has built a strong track record with its funds outperforming the respective benchmarks over multiple time 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 benchmark return of 20.10% and 23.24% since inception versus 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 on 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 of 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).

Tata AIA Nifty Alpha 50 Index Fund is Available with the following products and solutions:

Tata AIA Param Rakshak II Solution, Tata AIA Param Rakshak II 2.0 Solution, Tata AIA Param Raksha IV Solution, Tata AIA Param Rakshak Plus Solution, Tata AIA Param Rakshak ROP Solution, Tata AIA Param Rakshak ROP 2.0 Solution; Tata AIA Param Rakshak Pro Solution, Tata AIA Param Rakshak Prime Solution and Tata AIA Pro-Fit.         

Tata AIA Nifty Alpha 50 Index Fund is part of a various funds which a policyholder can choose from. • Nifty Alpha 50 Index Fund (SFIN: ULIF 077 30/09/24 NAF 110)