Tata AIA launches fund tracking Nifty 500 Multicap Quality 50 Index

New fund offer will invest in largecap, midcap and smallcap stocks

Tata AIA Life Insurance (Tata AIA) on Tuesday introduced a new fund that will seek long-term capital appreciation by investing in a portfolio of stocks that replicate the Nifty 500 Multicap Momentum Quality 50 Index.

 

Tata AIA Multicap Momentum Quality Index Fund, which will close on December 31, follows a factor-based investment strategy emphasising momentum and quality. It will replicate the Nifty 500 Multicap Momentum Quality 50 Index by employing a disciplined, rule-based approach. The investments span across largecap, midcap and smallcap stocks, with an asset allocation of 80-100 per cent in equity and equity-related instruments. The remaining 0-20 per cent  is allocated to cash or money market instruments for effective liquidity management.

 

Tata AIA policyholders can invest in the Multicap Momentum Quality Index Fund through the company's unit linked insurance plans. These include the TATA AIA Param Raksha solutions and the Tata AIA Pro-Fit plan. These offerings combine the long-term growth potential of equity investments with the essential life and health insurance coverage needed to protect consumers and their families.

 

“The Tata AIA Multicap Momentum Quality Index Fund is a thoughtfully designed offering that blends the benefits of momentum-driven stock selection with the assurance of quality and diversified investments,” said Harshad Patil, executive vice-president and chief investment officer of Tata AIA.

 

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

 

It invests across market cap segments, benefiting from the stability of large-caps and high growth potential of mid and smallcap stocks.

 

Focuses on momentum-driven, quality stocks to optimise returns while ensuring the portfolio's fundamental strength.

 

It invests 80 per cent to 00 per cent  in equity and equity-related instruments and 0 per cent to 20 per cent in cash and money market instruments, ensuring an effective balance between growth and liquidity.

 

The fund aligns with the Nifty 500 Multicap Momentum Quality 50 Index, adhering to the principles of disciplined, rule-based investing.

 

Performance metrics

 

As of November 2024, 96.22 per cent  of Tata AIA Life rated assets under management has received 4 or 5-star ratings from Morningstar. The company's existing funds have consistently outperformed market benchmarks, with the Multi Cap Fund, Top 200 Fund, and India Consumption Fund delivering five-year CAGR returns of 28.22 per cent , 28.52 per cent , and 26.95 per cent  respectively, significantly exceeding their benchmark returns of 17.12 per cent .