Tata AIA Life debuts emerging opportunities fund, NFO opens today

Through ULIPs from Tata AIA including Fortune Pro, Wealth Pro, Fortune Maxima, and Wealth Maxima, investors can invest in the fund. Additionally, Tata AIA’s Param Rakshak Solutions will be linked to this fund. Tata AIA Life claims, this offers consumers 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 cover.

By investing in a portfolio of stocks that offer opportunities in the mid-cap sector and rising pioneers in the emerging sectors that offer considerable long-term wealth creation, the fund’s investment goal is to generate capital appreciation over the long term. Up to 30% of the portfolio could be allocated by the fund to equity and equity-related securities that lie outside the mid-cap bracket.

Tata AIA Life Insurance (Tata AIA) said in an official release that, the Emerging Opportunities Fund is an equity fund 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.

Harshad Patil, Executive Vice President and Chief Investment Officer (CIO), Tata AIA Life Insurance, said, “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. Our ULIP funds have performed well in comparison with benchmarks and are highly rated by rating agencies such as Morning Star. 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.”

“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. This we believe is the key value-add of our new Fund offering”, he further added.

Performance of existing equity funds of Tata AIA

Data as on 30 November 2022. # Morningstar ratings as of 31st October 2022 on an overall basis. Inception dates: Whole Life Midcap Equity Fund: 10 Jan 2007, Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 5 Oct 2015.

In addition to having a strong track record with its existing funds, fund analysts have given Tata AIA’s ULIP funds a very good rating. As of October 31st, 2022, 98.96% of Tata AIA Life’s rated AUM has a 5-year Morningstar Rating of 4 stars or 5 stars. As of October 31, 2022, Tata AIA Life’s assets under management (AUM) totalled ₹64,149 crore.

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, established by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). The Tata group, which has 30 firms spread across ten sectors and was founded by Jamsetji Tata in 1868, is a multinational conglomerate with its headquarters in India.