Kolkata: This is an index fund with a difference. Tata AIA Life Insurance Co is launching Tata AIA Multicap Momentum Quality Index Fund. Its objective is to generate long-term capital appreciation through a policy of investing in stocks that mirror the Nifty 500 Multicap Momentum Quality 50 Index. Investors will get an opportunity to invest in the NFO between December 24 and December 31.
The NFO literature has said that the funds will be invested in large-cap, mid-cap, and small-cap stock with an eye on momentum and quality. The company has said that Tata AIA policyholders can invest in the Multicap Momentum Quality Index Fund through the company’s Unit Linked Insurance Plans.
Proposed benefits for investors
The management of the company has claimed that the fund will deliver a few benefits: They are:
- Since the investment will be across different markets cap, investors will benefits from stability of large-cap stocks as well as growth potential of mid and small-cap ones.
- It will mirror the Nifty 500 Multicap Momentum Quality 50 Index, It will stock to the canons of disciplined, rule-based investing.
- Momentum and quality stocks will be the focus of the investment across the market cap segments, which will optimise returns
- The fund managers will strike a balance between balance between growth and liquidity by investing 80%-100% in equity and equity-related instruments and 0%-20% in cash and money market instruments.
“Wealth creation, freedom from worries”
The Multicap Momentum Quality Index Fund is an open-ended fund and is described as high-risk. It is suitable for investors with long-term financial goals and a higher risk appetite. “As India’s economy continues on its growth trajectory, the equity markets present a compelling opportunity for wealth creation. However, navigating market volatility and elevated valuations requires a disciplined and strategic approach. The Tata AIA Multicap Momentum Quality Index Fund is a thoughtfully designed offering that blends the benefits of momentum-driven stock selection with the assurance of quality and diversified investments. This ensures policyholders can capture growth opportunities and realize their long-term financial goals. With the life and health management services, this fund underscores our commitment to make our consumers enjoy a fikar-free life,” said Harshad Patil, executive vice president, and chief investment officer of Tata AIA .
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