Tata AIA Life Insurance debuts 2 unit linked NFOs, offerings to close in March

Tata AIA’s Sustainability Equity Fund makes long-term investments in companies that follow sustainable or ESG-friendly strategies in an attempt at enhancing capital appreciation. Following ESG criteria, the fund will invest 80–100% in equity and equity-related instruments and up to 20% in other equity, debt, or money market instruments. Tata AIA said it will plant a sapling that will be geo-tagged and provide a digital certificate of the same to every policy holder, investing in this fund.

The Dynamic Advantage Fund from Tata AIA seeks to produce higher and consistent returns irrespective of market turmoil. Depending on the state of the market, the fund will dynamically split the investment corpus between equity and debt.

“Investments in the two NFOs can be made through Tata AIA’s ULIP offerings like Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima. Consumers can also avail this opportunity by purchasing Tata AIA’s unique investment linked protection solutions, Param Rakshak and Sampoorna Raksha Supreme. Consumers can thus benefit from market linked returns, while securing their loved ones with the protection of a life insurance cover,” said Tata AIA Life Insurance in a statement.

Harshad Patil, Executive Vice President and Chief Investment Officer (CIO), Tata AIA Life Insurance, said, “Protecting our future is crucial in these times of volatility and economic uncertainty. At the same time, we are witnessing significant climatic changes, clearly revealing the negative impact of rapid urbanization and development on our planet. Keeping this in mind, we have come up with two unique NFOs that will enable investors to tide through these challenges while contributing to a better future of our planet.”

Speaking about the Sustainable Equity Fund, he said “Today, consumers are keen to ensure their financial security, while contributing to a greener environment. Investors millennial consumers are leaning towards environmentally responsible companies, be it from an investment perspective or choosing their products for consumption. Tata AIA’s Sustainable Equity Fund offers investors a unique opportunity to benefit from sustainable investment avenues to secure their financial future while helping create a better tomorrow for mankind. It may be noted that echoing these trends, the ESG 100 index in India has given better returns than the broader Nifty 50 or 100 index over 3 and 5 years duration.” 

“When it comes to making consistent returns in the markets, it is important to remember that no asset class outperforms others at all times. Hence it is very important that one diversifies the investments and leaves the job of allocating funds amid market volatility to professional fund managers with business cycles getting shorter and markets reacting to various events, a dynamic asset allocation fund can help generate consistent returns across market cycles,” said TATA AIA in a stock exchange filing.

“The Dynamic Advantage Fund aims to provide investors returns despite volatile market conditions. It will do so by dynamically investing in a combination of equity and debt avenues. Investors can thus benefit from the growth potential of equity, while benefiting from the downside protection that debt funds investments offer. Investors no longer need to closely track the markets and rebalance their portfolio manually, a task nearly impossible given the sharp and regular market movements.” Harshad added.

In terms of sustainability, the Tata group has been in the forefront. According to the 2022 GlobeScan Sustainability Leaders Survey, it is ranked first in Asia for sustainability. 

According to TATA AIA, sustainability is currently an important criterion for businesses when it comes to adopting sustainable or ESG friendly protocols. Apart from categories such as financial inclusion, Sustainable investing covers new age fields such as Electric Mobility, Robotics and Automation Information access etc. Many Infotech, Fintech and other firms are making rapid progress in these contemporary categories, offering exciting long term investment opportunities. From a consumer perspective, increasing social consciousness and environmental concerns are influencing their purchase decisions. 

Nielsen reports that 75% of Millennials are concerned about the environment to the extent that they have altered their purchasing patterns in favour of sustainable products. 90% of Millennials are eager to make sustainable investment decisions. As a result, there is a huge chance to develop investments that let people fully grasp owning their financial fortunes and contributing to the environment.

Tata AIA maintains a long-term perspective based on fundamental research and has a clearly defined research process and methodology. In addition to having a strong track record with its existing funds, fund trackers have given Tata AIA’s ULIP funds a very good rating. As of March 31st, 2022, 99% of Tata AIA’s rated AUM has a 5-year Morningstar Rating of 4 stars or 5 stars. As of February 28, 2023, Tata AIA Life has INR 69286 crore in assets under management (AUM).