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Tata AIA Life Insurance has launched the Midcap Momentum Index Fund, a new fund offer aimed at capitalising on the dynamic growth potential of India's midcap sector. The fund aims to invest in 50 top-performing stocks from the Mid-Cap 150 index, offering a triple advantage: the potential for high long-term returns, substantial life coverage, and health and wellness benefits through the associated investment-linked plan.
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 organised sectors, global supply chain realignment, and supportive government policies, these factors create a favourable environment for midcap companies to thrive. The New Fund Offering (NFO) window will remain open until 15 June at an 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 normalised momentum score, offering investors a chance to benefit from high-growth midcap stocks.
The Midcap Momentum Index Fund offers reasons for investment, with the primary objective of achieving long-term capital appreciation through a diversified portfolio of midcap companies. The fund's composition includes an allocation of 80 to 100 per cent in equity and equity-related instruments and 0 to 20 per cent in cash and money market securities.
“The midcap momentum index has grown 11-fold 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 capitalise on this dynamic sector powered by India’s growth story,” said Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA.
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 health, wellness and life cover benefits. 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 policy.
Samit Upadhyay, President, CFO and Head of Products and Propositions of Tata AIA, said, “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.”
