Bajaj Life launches Nifty 500 Low Volatility 50 Index Fund; check details

Bajaj Life Nifty 500 Low Volatility 50 Index Fund: Bajaj Life Insurance has announced the launch of the Bajaj Life Nifty 500 Low Volatility 50 Index Fund for customers investing through its unit-linked insurance plans (ULIPs). The fund enables policyholders to pursue capital appreciation while benefiting from the dual advantage of life cover and a disciplined investment approach. 

 

The new fund offer (NFO) will open for subscription from Thursday, April 16 to Thursday, April 30, 2026.

 

According to Bajaj Life Insurance, the fund is designed to provide steady compounding over the long term and predominantly

focuses on defensive, large-cap, and mid-cap stocks. It tracks the Nifty 500 Low Volatility 50 Index. 

 

 

The insurer said that the fund has a predominantly large-cap orientation, with around 79 per cent allocation to large-cap stocks, while the rest is spread across mid- and small-cap segments. This composition provides a diversified yet defensive equity portfolio.

 

Srinivas Rao Ravuri, chief investment officer at Bajaj Life Insurance, said in an environment of heightened market uncertainty, a low volatility passive strategy offers a compelling proposition for long-term investors. 

 

"The Bajaj Life Nifty 500 Low Volatility 50 Index Fund applies a disciplined, data-driven methodology to select stocks that have demonstrated price stability, offering a smoother investment experience without compromising the opportunity to participate in India's equity growth story. We believe this fund can serve as an effective core allocation for investors looking to build wealth steadily over time,” Ravuri said.

 

The fund uses a transparent, rules-based approach to select 50 stocks with low volatility, measured as the inverse of the standard deviation of one-year trailing returns. It is rebalanced semi-annually in June and December to reflect changing market conditions. Stock weights are capped at the lower of 5 per cent or five times their free-float market-cap weight at inclusion, helping limit concentration risk and maintain stability.

 

According to the insurer, the fund is suitable for long-term investors seeking systematic, rules-based equity exposure with relatively lower volatility than the broader market.