Tata AIA Life Insurance launches two new funds focused on India’s sector leaders

Tata AIA Life Insurance (Tata AIA) has announced the launch of two new funds that allow investors to back India’s sector leaders while ensuring their families’ financial security with life insurance protection.

Two new funds - Tata AIA Sector Leaders Index Fund and Tata AIA Sector Leaders Index Pension Fund will open for subscription.

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Both funds will be available for subscription at an initial price of Rs 10 per unit during the New Fund Offer (NFO) period, which ends on September 22. Moreover, with the new GST norm coming into effect on September 22, these fund charges will be exempted from GST, according to a press release.

As India’s economy continues to expand, driven by rising consumption, increasing disposable incomes, and growing demand supported by lower interest rates, the country’s leading companies—sector leaders—are uniquely positioned to capitalise on these emerging opportunities and shape the future of the economy, according to the press release.

“With the possibility of increased affordability through expected reductions in GST rates across a range of product categories, these companies not only drive economic growth but also present investors with a significant opportunity to build long-term wealth,” the release said.

Tata AIA Sector Leaders Index Fund is a fund that invests in India’s top-performing companies that dominate their respective sectors, offering investors an opportunity to create long-term wealth.

Tata AIA Sector Leaders Index Pension Fund is available through Tata AIA’s unit-linked pension solutions, this fund is designed to help customers build a robust retirement corpus through systematic investments in sector leaders.

Investors can participate through Tata AIA Life Insurance’s unit-linked solutions, providing the combined advantages of life insurance coverage and long-term wealth creation.

“India’s growth is being driven by sector leaders who are strategically positioned to capitalise on rising demand and favourable policies. Our newly launched Sector Leaders Index Funds benefit from investing in an index which uses a disciplined approach to identify these top-performing companies and employ a systematic investment strategy to benefit investors. These funds enable our policyholders to capitalise on the wealth creation potential of the equity markets, while also offering financial protection for their families through investment in our ULIP solutions, ensuring they remain ‘Har Waqt Ke Liye Taiyaar,” said Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance.

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According to Tata AIA Life Insurance, one should invest in these funds as they tap into India’s growth story, invest in market leaders, give diversification with discipline, help in long-term wealth creation, help in retirement , and lastly add life insurance protection.

The investment objective of these funds is long-term capital appreciation by investing in stocks aligned to the Sector Leaders Index. The performance is benchmarked against BSE India Sector Leaders Customised Index.

The asset allocation is 80%–100% in equity and equity-related instruments; 0%–20% cash and money market instruments.