Tata AIA Life Launches Midcap Momentum Index Fund as Indian Economy Poised for Multi-Fold Expansion

  • Fund to invest in 50 high performing stocks of Mid-cap 150 index.
  • Offers triple benefit of potentially high long-term returns, coupled with high life cover and health & wellness benefits from underlying investment linked plan.

Bengaluru, June 3, 2024: Tata AIA Life Insurance (Tata AIA), one of India’s leading life insurers, has launched the Midcap Momentum Index Fund, a new fund offer aimed at capitalizing on the dynamic growth potential of India’s midcap sector.

The Indian equity market presents significant wealth creation opportunities as the economy is expected to grow multi-fold over the next few decades. Driven by growing consumption, rising disposable income, the shift towards organized sectors, global supply chain realignment, and supportive government policies, these factors create a favorable environment for midcap companies to thrive. The New Fund Offering (NFO) window will remain open until June 15 at a NAV of Rs. 10 per unit.

The Midcap Momentum Index Fund will mirror the Nifty Midcap 150 Momentum 50 index. This index tracks the performance of the top 50 high growth companies within the Nifty Midcap 150, selected based on their Normalized Momentum Score, offering investors a chance to benefit from high-growth midcap stocks.

Key Highlights of the Midcap Momentum Index Fund that offers consumers compelling reasons to invest:

  • Investment Objective: long-term capital appreciation through a diversified portfolio of midcap companies.
  • Fund Composition: 80%-100% in equity and equity-related instruments, 0%-20% in cash, and money market securities

Commenting on the launch, Harshad Patil, Executive Vice President, and Chief Investment Officer (CIO) of Tata AIA said, “The Midcap momentum index has grown 11x in the last 9 years, demonstrating the robust growth of India’s midcap sector. With the Midcap Momentum Index Fund, we aim to provide our investors with an attractive proposition to capitalize on this dynamic sector powered by India’s growth story. India is well into its Amrit Kaal, driven by robust growth in manufacturing and services sector, rising consumption demand, financialization of saving etc. Our offering enables consumers to enjoy long term returns, backed by the financial security and health & wellness benefits from the underlying investment linked plans offered by us.”

Tata AIA policyholders can invest in this fund through the company’s ULIP offerings, including Fortune Pro, Wealth Pro, Fortune Maxima, and more. They can also invest in the fund through innovative ILP solutions like Param Rakshak Plus and Pro-Fit, which offer multiple benefits across health, wellness, and life cover. This provides consumers with the unique opportunity to benefit from the long-term growth potential of equity while securing their loved ones with the protection of a life insurance cover.

Mr. Samit Upadhyay, President – CFO & Head of Products and Propositions of Tata AIA added “At Tata AIA, we continuously strive to innovate and offer solutions that cater to the diverse financial needs of our consumers. The Midcap Momentum Index Fund, combined with our Param Rakshak series and Pro-Fit, provides a unique proposition that balances growth potential with the security of life insurance and health coverage. We are confident that this new fund will resonate with our investors seeking to achieve their long-term financial goals.”

Tata AIA Life Insurance continues to innovate and deliver exceptional value to its policyholders. With the introduction of the Midcap 150 Momentum 50 Index Fund, Tata AIA reaffirms its commitment to providing robust investment opportunities that align with the evolving financial goals of its consumers. By investing in this fund, policyholders can harness the growth potential of India’s midcap segment while enjoying the security and peace of mind that comes with a comprehensive life insurance cover.

Tata AIA Funds have delivered Benchmark Beating Performance:

Last Five-Year Returns” (CAGR)
Tata AIA Funds Fund Return (%) * Benchmark Return (%) *
Multi Cap Fund 27.80% 16.10%
Top 200 Fund 27.14% 16.10%
India Consumption Fund 26.92% 16.10%

*Data as on April 30, 2024. Past Performance is not the indicative of future performance. Fund Benchmark: Multi Cap Fund, India Consumption Fund, Top 200 Fund: S&P BSE 200

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. The Company has built a well-defined research process and takes a long-term view to ensure continuous value for its consumers. The total Assets Under Management (AUM) has crossed INR. 1 Lakh crores mark in April 2024. Notably, 91% of the rated AUM of Tata AIA is rated 4 star or 5 stars on a 5-year basis as of March 31, 2024, by Morningstar Ratings**

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