Tata AIA Life Insurance on December 15, 2022 announced the launch of the Emerging Opportunities Fund.
The new fund offering (NFO ) will remain open from December 15-30, 2022, at Rs. 10 per unit, which is applicable only during the NFO period, the insurer announced in a press release.
According to Tata AIA Life Insurance, this new fund will invest in mid-cap companies and emerging market leaders with the potential to generate significant future growth.
Investments in the fund can be made through Tata AIA’s unit-linked insurance plans (Ulips), such as Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima.
In addition, this fund will also be attached to Tata AIA’s Param Rakshak Solutions. This offers consumers the opportunity to benefit from the long-term growth potential of equity, while also securing their loved ones with the protection of a life insurance cover, the insurer said in the press statement.
According to the insurer, the investment objective of the fund is to generate capital appreciation in the long-term by investing in a portfolio of stocks that offer opportunities in the mid-cap space and emerging leaders in the new age sectors offering significant long-term wealth creation.
The fund can invest up to 30 per cent of the portfolio in equity and equity-related instruments falling outside the mid-cap range.
According to the insurer, this is an equity fund and, therefore, it is suitable for consumers who are looking to benefit from the long-term growth potential in equity and have relatively high-risk appetite.
“Mid-cap stocks usually go through a high degree of market volatility, which tends to even out in long term. An investor participating in this NFO should be comfortable averaging out market volatility by staying invested to benefit from long-term compounding returns,” the insurer said in the press release.
Harshad Patil, executive vice president and chief investment officer, Tata AIA Life Insurance, says: “As mid-cap companies continue to grow rapidly, investing in these stocks offers our policyholders a great opportunity to build wealth. Mid-cap stocks are likely to see healthy returns, since India’s market is on a growth trajectory. New funds, such as the Emerging Opportunities Fund, will offer our existing and new investors an opportunity to participate in the growth of the Indian markets through equity investments with the added benefit of life insurance.”
He adds: “This fund aims to invest in a portfolio of stocks in the mid-cap space and emerging leaders in the new age sectors. These new-age companies are present across market caps. Most of them are leaders in the industries that they operate and provide a long runway for growth. With the new fund’s ability to seamlessly move from mid- and large-cap bias to mid- and small-cap bias, we aim to capture such emerging long-term themes. We believe this is the key value-add of our new fund offering.”
