Tata AIA Life Unveils Multicap Momentum Quality Index Pension Fund—A Smarter Way to Grow Your Retirement Wealth

Tata AIA Life Unveils Multicap Momentum Quality Index Pension Fund—A Smarter Way to Grow Your Retirement Wealth

• A Unique Opportunity for Those Planning a Secure and Prosperous Retirement

Bengaluru, 21 February 2025: Retirement planning is no longer just about saving diligently—it’s about investing wisely to sustain the aspirations of a new generation. Today’s retirement aspirants are redefining financial independence, seeking solutions that align with their evolving lifestyles, career ambitions, and long-term wealth goals. Whether it’s the FIRE (Financial Independence, Retire Early) generation, professionals embracing career shifts, or entrepreneurs building their ventures, they demand investment avenues that offer financial security and opportunities for wealth creation.

As financial awareness grows and digital access simplifies investing, there is an increasing need for innovative, flexible, and growth-oriented retirement solutions. Traditional savings instruments, while secure, often fall short of meeting the dynamic needs of modern investors. This is where next-generation financial products, such as Tata AIA Life Insurance Co. Ltd. (Tata AIA) latest NFO, the Multicap Momentum Quality Index Pension Fund come into play. Designed to empower individuals with smarter, market-linked solutions that help them build a robust retirement corpus while staying in control of their financial future.

Why This Fund is an Ideal Choice for Retirement Planners

Retirement planning is not just about saving—it’s about growing your wealth while managing risks. Tata AIA’s new fund is structured to capture market growth opportunities while ensuring portfolio stability through a quant-based investment strategy. By investing in this fund, policyholders can benefit from:

• Long-term Capital Growth – Invests in high-potential companies aligned with the Multicap Momentum Quality 50 Index
• Smart Diversification – Exposure across large, mid, and small-cap stocks for balanced growth
• Risk-Optimized Investing – Uses momentum and quality factors to select fundamentally strong, high-growth stocks
• Convenient Retirement Planning – Available through Tata AIA’s Smart Pension Secure plan, offering pension-linked benefits
• Easy Access: Available online and accessible through Tata AIA’s website and its digital partner ecosystem, including Policybazaar, Tata Neu, and PhonePe, enabling seamless, investment, anytime, anywhere.

Key Fund Details

• Investment Focus: Companies aligned with the Multicap Momentum Quality 50 Index
• Asset Allocation: 80%-100% in equity and equity-related instruments, 0%-20% in cash & money market securities
• Risk Profile: Designed to provide high returns with managed risk, ensuring stability
• Fund Management Charge (FMC): 1.35% per annum
• New Fund Offer (NFO) Window: Opens 21st February 2025, closes 28th February 2025

Why consumers should invest in the Multicap Momentum Quality Index Pension Fund:

• It invests across market cap segments, benefiting from the stability of large-caps and high growth potential of mid and small-cap stocks.
• Focuses on momentum-driven, quality stocks to optimize returns while ensuring the portfolio’s fundamental strength.
• It invests 80%-100% in Equity & Equity-related instruments and 0%-20% in Cash and Money Market Instruments, ensuring an effective balance between growth and liquidity.
• The fund aligns with the Multicap Momentum Quality 50 Index, adhering to the principles of disciplined, rule-based investing.

A Smarter Way to Secure Your Financial Future

Commenting on the launch, Harshad Patil, Chief Investment Officer, Tata AIA, said: “Retirement planning today requires a smarter, more strategic approach. The Multicap Momentum Quality Index Pension Fund is designed for investors who want to benefit from India’s economic growth while securing their future. By blending momentum and quality investing, we aim to deliver superior risk-adjusted returns, helping our policyholders achieve financial independence in their retirement years.”

With India’s economy set for long-term expansion, this fund enables policyholders to participate in the country’s growth story while securing their retirement goals. Whether you’re an early planner or someone looking to maximize returns closer to retirement, this fund offers a powerful way to grow your wealth.

Santosh Agarwal, Chief Business Officer – Life Insurance, Policybazaar, said, “In India, retirement planning has long been centered around using up personal savings or counting on family support, but this is changing rapidly. We are committed to making this transition smoother through solutions that are easily accessible. In partnership with Tata AIA, we are excited to introduce a pension fund that not only focuses on wealth creation but also ensures portfolio stability and caters to a diverse range of investors. It is a forward-thinking approach to financial planning that also allows individuals to benefit from the growth of the Indian economy.”

Amreesh Kher, Chief Business Officer, Insurance, Tata Digital said, “Navigating retirement investments can feel overwhelming. Tata Neu* simplifies this process with a user-friendly platform where you can explore Tata AIA’s Smart Pension Secure plan, with a new fund offering (NFO) of the Multicap Momentum Quality Index Pension Fund. This fund offers investors a strategic opportunity to participate in India’s growth story, with a quant-based strategy that balances risk and return. From accessing fund details to initiating your investment in just a few clicks, Tata Neu makes planning for your golden years remarkably straightforward.”

Start Your Retirement Growth Journey Today!

Investing in the Multicap Momentum Quality Index Pension Fund through Tata AIA’s Smart Pension Secure plan ensures that you don’t just save for retirement—you grow your wealth intelligently for a financially stress-free future.

Key Features:

Smart Pension Secure Plan is customised in a way that it helps consumers live a fikar-free life. Some of its key benefits include:

• Plan Early Retirement:  Complete flexibility to retire as early as age 45 years!
• Market-Linked Returns: Multiple funds across asset classes with the option to allocate 100% funds in Equity. Unlimited fund switches at no cost.
• Cost Effective Plan: Your entire premium gets invested in the funds of your choice, allowing your money to grow and pave the way for a dream retirement.
• Reward for staying invested: Online purchase comes with added Fund Boosters & Loyalty additions.
• Tata AIA Health Buddy: To ensure a happy and “Healthy” retirement, Tata AIA Health Buddy is a complementary service providing attractive discounts on pharmacy purchases and diagnostic tests at customers’ convenience. The customer can also choose for OPD services by opting for Health Secure Rider.
• Tax Benefits: Save Tax u/s 80CCC and avail 60% Tax-free on Lumpsum at Maturity
• Added Protection coverage: In-built Waiver of Premium option to secure family needs at the time of distress.

Tata AIA Life Insurance continues to set benchmarks in fund performance through its other Unit Linked Insurance Plans (ULIPs). The company’s funds have outperformed market benchmarks.

Performance of Tata AIA Funds: Last 5 Years Returns* (CAGR) 

Tata AIA Funds	Fund Return (%) **	Benchmark Return (%) **
Multi Cap Fund	25.32%	16.17%
Top 200 Fund	25.80%	16.17%
India Consumption Fund	24.16%	16.17%

**Data as of January 31, 2025. 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.

As of 31st January 2025, Tata AIA has grown its Assets Under Management (AUM) significantly to INR 118,721 Crores, translating to 27.36% YoY growth. This has been possible due to robust Individual New Business Premium income and exceptional investment performance.

Note: Investors should carefully assess their risk appetite as the fund has a high-risk profile. Past performance is not indicative of future results.

*All Insurance products including life (term, ULIP etc), health, and cyber insurance is sourced through Tata Fintech Pvt Ltd, a corporate agent to all Insurance Companies listed on Tata Neu App and www.tataneupolicy.com with IRDAI Reg No CA:0818). For more information of Insurance Products, visit www.tataneupolicy.com. The underwriting decision of Insurance products lies with the Insurance Company concerned.