Tata AIA Life Insurance has unveiled the Midcap Momentum Index Fund, a new investment opportunity designed to leverage the dynamic growth potential of India’s midcap sector. This fund targets the top 50 performing stocks from the Mid-Cap 150 index, offering investors a threefold advantage: the potential for substantial long-term returns, significant life coverage, and health and wellness benefits through an associated investment-linked plan.
The Indian equity market holds promising wealth creation prospects, with expectations of significant economic expansion over the coming decades. Fueled by increasing consumption, rising disposable incomes, a shift towards organized sectors, global supply chain realignments, and supportive government policies, these factors create a conducive environment for midcap companies to flourish. The New Fund Offering (NFO) window will remain accessible until June 15, with a Net Asset Value (NAV) of Rs. 10 per unit.
The Midcap Momentum Index Fund will replicate the Nifty Midcap 150 Momentum 50 index, which tracks the performance of the top 50 high-growth companies within the Nifty Midcap 150. These companies are selected based on their normalized momentum score, providing investors with an opportunity to capitalize on the growth potential of midcap stocks.
The primary objective of the Midcap Momentum Index Fund is to achieve long-term capital appreciation through a diversified portfolio of midcap companies. The fund’s composition comprises an allocation of 80% to 100% in equity and equity-related instruments, and 0% to 20% in cash and money market securities.
Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA, expressed, “The midcap momentum index has expanded 11 times over the past nine years, underscoring the robust growth of India’s midcap sector. With the Midcap Momentum Index Fund, we aim to offer investors an appealing opportunity to capitalize on this dynamic sector, fueled by India’s growth narrative.”
Tata AIA policyholders can access this fund through the company’s Unit Linked Insurance Plans (ULIPs), including Fortune Pro, Wealth Pro, Fortune Maxima, among others. Additionally, they can invest through innovative Investment Linked Plans (ILPs) like Param Rakshak Plus and Pro-Fit, which offer multiple benefits spanning health, wellness, and life cover. This affords consumers a distinctive opportunity to leverage the long-term growth potential of equity while safeguarding their loved ones with the protection of a life insurance policy.
Mr. Samit Upadhyay, President, CFO, and Head of Products and Propositions at Tata AIA, remarked, “The Midcap Momentum Index Fund, in conjunction with our Param Rakshak series and Pro-Fit, presents 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 investors striving to achieve their long-term financial objectives.”
