Tata AIA Investment Plans: Performance delivery, right from the start

Bengaluru, 13 March, 2024: Driven by its core value of consumer obsession, Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurers, has introduced a host of funds, over time, for the benefit of consumers. One can avail of these funds through the company’s unique Investment-Linked Plans (ILPs), ULIPs, and market-linked health plans, to generate wealth in the long term and ensure protection cover for loved ones. From capitalizing on small caps and emerging opportunities to investing in sustainably conscious companies, the spectrum of these funds is versatile.

Tata AIA’s investment philosophy reflects an unwavering commitment to policyholders, focusing on delivering superior, consistent, and risk-adjusted long-term returns, driven by a bottom-up stock-picking strategy. Notably, 95.25% of the rated Asset Under Management (AUM) of Tata AIA is rated 4 star or 5 stars on a 5-year basis as of January 31st, 2024, by Morningstar Ratings*, the global benchmark. As of February 2024, the total Asset Under Management is INR 96,532 Cr.

Commenting on the performance of these funds, Harshad Patil, Chief Investment Officer (CIO), of Tata AIA said, “The success of our funds can be attributed to Tata AIA’s investment philosophy of portfolio construction through bottom-up stock selection, focusing on companies with sustainable earnings growth. Be it our recent fund launches or time-tested offerings, our research driven approach and focus on quality stocks has enabled us to deliver benchmark beating performance, across market cycles.”

In December 2022, Tata AIA launched the Emerging Opportunities Fund, which invests in mid-cap companies and emerging market leaders with the potential to generate significant future growth. The investment objective of the Fund is to generate capital appreciation in the long term by investing in a portfolio of stocks that offer opportunities in the mid-cap space and emerging leaders in the new age sectors offering significant long-term wealth creation along with insurance benefits. The fund can invest up to 30% of the portfolio in equity and equity-related instruments falling outside the mid-cap range.

In March 2023, Tata AIA launched the Sustainability Equity Fund which aims to generate capital appreciation in the long term by investing in companies that adopt sustainable or Environmental, Social, and Governance (ESG) friendly practices. The fund invests 80-100% in equity and equity-related instruments following ESG criteria, and up to 20% in other equities or debt or money market instruments.

In the same month, the Company also launched Dynamic Advantage Fund. The fund seeks to generate superior and steady returns by dynamically allocating the investment corpus between Equity and Debt depending upon market conditions. Investors can thus benefit from the growth potential of equity while benefiting from the downside protection that debt funds’ investments offer. As a result, they don’t need to track the markets and rebalance their portfolios manually, a difficult task given the sharp and regular market movements.

In July 2023, the Company launched its first dedicated Small-Cap fund, the Small Cap Discovery Fund. The fund offers policyholders the opportunity to generate capital appreciation in the long term by investing in small-cap stocks.

The robust economic growth of India, despite global uncertainty, offers stability and attractive investment opportunities. Investment Linked Plans (ILPs) offered by Tata AIA such as Param Rakshak Solutions or Pro-fit allow policyholders the opportunity to invest in a variety of sectors that are likely to benefit from the country’s robust economic growth. In addition, consumers have the security of life insurance cover, which enables them to live their lives Fikar-free and be Har Waqt Ke Liye Taiyaar.

* © 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.

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