NFO Update: Tata AIA Life Insurance launches Multifactor Index Fund

Market volatility can make it difficult for investors to stay committed to their long-term financial goals. In an environment marked by global uncertainty, fluctuating interest-rate conditions, and geopolitical developments, many consumers are looking for investment options that allow them to participate in India’s growth story while aiming to reduce the impact of sharp market swings.

Recognising this need, Tata AIA Life Insurance, one of India’s leading private life insurers, has launched the Tata AIA Multifactor Index Fund, a unit-linked solution designed to offer customers equity market participation along with the protection benefits of life insurance.

Also Read | NFO Insight: Can JM Multi Asset Allocation Fund help investors navigate uncertain market?


The new fund offer is open for subscription and will close on June 30. All policies sourced during this period will be issued at a Net Asset Value, or NAV, of Rs 10, effective 30 June 2026.

At the core of the fund is a low-volatility-focused multifactor strategy that aims to bring greater stability to equity investing. The fund selects 50 companies from the Nifty 500 universe using a combination of four factors: low volatility, quality, value and momentum, creating a balanced approach to long-term wealth creation.

The emphasis on low volatility is especially relevant for customers who want to stay invested through uncertain or volatile market cycles. The strategy targets companies that have historically shown more stable price movements, helping investors pursue a steadier, more resilient investment journey while continuing to participate in equity market growth.

Why this matters for customers

India continues to offer strong long-term growth potential, supported by consumption, manufacturing, infrastructure development and digital expansion. However, markets do not move in a straight line. Sector leadership, investment styles and market sentiment can change frequently, making it challenging for customers to decide where and how to invest.

A single-theme or single-style approach can concentrate risk, leaving investors more exposed to specific market downturns. The Tata AIA Multifactor Index Fund addresses this by combining multiple drivers of return. The low-volatility component adds a layer of stability by aiming to reduce exposure to sharp price fluctuations, while the quality, value and momentum factors support long-term growth potential.

A disciplined way to stay invested

Available through Tata AIA’s ULIP solutions, the fund enables customers to combine market-linked investment opportunities with life insurance protection in a single solution.

The strategy is designed for customers seeking long-term wealth creation who prefer a stable, transparent and rules-based approach to investing. By following a passive, quantitative framework, the fund reduces dependence on discretionary stock selection and ensures consistency in how the portfolio is constructed and rebalanced.

The performance of the fund will be benchmarked against the Nifty 500 Multifactor MQVLv 50 Index (Customised), and the fund will track a customised index built from the Nifty 500 universe and designed in line with IRDAI regulatory requirements for ULIP-linked funds.

Also Read |Should you stop your SIP because the market is not doing well? History suggests otherwise

The fund maintains a predominantly equity-oriented portfolio, enabling customers to participate meaningfully in market-linked growth. A measured allocation to liquid instruments provides operational flexibility and helps manage short-term liquidity requirements within the fund. The stock selection is based on a rules-driven framework, helping remove discretionary bias and maintain consistency across market cycles.

The fund holds a focused yet diversified portfolio of 50 stocks, selected for their combined strength across low volatility, quality, value and momentum. This gives customers broad market exposure while aiming to manage concentration risk.

The Tata AIA Multifactor Index Fund aims to deliver diversified equity exposure through a systematic, factor-based framework with a strong emphasis on low volatility. It is designed for long-term customers seeking steadier participation in India’s growth story through a market-linked life insurance solution.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.