Tata AIA Life Insurance (Tata AIA) launched the Tata AIA Midcap Momentum Index fund offering the opportunity for investors to tap into the growth of India's midcap sector.
The New Fund Offering (NFO) window will run from June 1, 2024, to June 15, 2024, at an NAV of Rs. 10 per unit. The fund management charges will be 1.20 per cent per annum.
Tata AIA Midcap Momentum Index will mirror the Nifty Midcap 150 Momentum 50 index which tracks the performance of the "top 50 high growth companies within the Nifty Midcap 150," selected based on their Normalised Momentum Score.
A normalised Momentum score facilitates a momentum investing strategy, based on choosing stocks that have demonstrated strong performance in the recent past and are likely to continue the trend.
India's mid-cap sector driven by growing consumption, rising disposable income, and the shift towards organized sectors offers wealth creation opportunities, the release said. Further global supply chain realignment and supportive government policies play a part in the growth of the mid-cap sector.
The fund will invest in a portfolio of 80 per cent to 100 per cent in equity and equity-related instruments, 0 to 20 per cent in cash, and money market securities.
Harshad Patil, Executive Vice President, and Chief Investment Officer (CIO) of Tata AIA said, "The Midcap momentum index has grown 11x in the last 9 years, demonstrating the robust growth of India's midcap sector. India is well into its Amrit Kaal, driven by robust growth in the manufacturing and services sector, rising consumption demand, financialization of saving etc."
Investing in this fund can help consumers combine the benefits of mutual funds with health and wellness benefits from the underlying investment-linked plans, Patil said. The Nifty Momentum index had outperformed the Nifty Midcap 150 index over the long term. Since inception, the CAGR for the Nifty Midcap 150 Momentum 50 Index has been 23.6 per cent against 16.6 per cent of the Nifty Midcap 150 Index.
As the fund is offered with a ULIP plan, Tata AIA policyholders can combine the benefits of life insurance and mutual fund by investing in this fund through the company’s ULIP offerings, including Fortune Pro, Wealth Pro, Fortune Maxima, etc., the release said. Further investment can also be done through ILP solutions like Param Rakshak Plus and Pro-Fit, which offer multiple benefits across health, wellness, and life cover.
