Tata AIA Nifty Alpha 50 Index Fund NFO: Tata AIA Life Insurance has introduced a new fund offer called Nifty Alpha 50 Index Fund. Subscription in this NFO is open from 23 September to 30 September. This is an open-ended NFO, which will invest in high performing stocks of the Nifty Alpha 50 Index under the Alpha Investment Strategy. Through this fund, investments will be made in the top performing stocks of every market cap segment, due to which there will be a possibility of getting high returns. Along with this, this fund will also provide insurance protection to investors through Tata AIA’s Unit Linked Insurance Products (ULIP). This can be a good option for those investors who want to get high returns as well as insurance protection by investing in the best stocks of the market.
Investment Strategy of Nifty Alpha 50 Index Fund NFO
This NFO of Tata AIA will attempt to generate capital appreciation in the long term by investing in stocks linked to the Nifty Alpha 50 index. 80%-100% of the fund will be invested in equity and related financial instruments, while 0%-20% will be invested in cash and money market securities.
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Important things about NFO
- Subscription Window :23 September 2024 to 30 September 2024
- Benchmarks:Nifty Alpha 50 Index
- 5-year average annual return of the benchmark index:37.3%
- Fund Management Charges (annual):1.35%
- Risk Profile: High Risk
Asset Allocation:
– Equity and equity-based instruments: 80% – 100%
– Cash, Money Market Instruments, Bank Deposits and Mutual Funds:0% – 20%
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What is special in Nifty Alpha 50 Index Fund?
1. Investing in different market caps:This fund invests in the top 50 performing stocks out of the 300 best stocks in the market. It includes stocks of large, mid and small cap companies, which have the potential to give high returns despite market volatility.
2. Alignment with market sentiment:Nifty Alpha 50 Index Fund will rebalance its portfolio on the last trading day of every quarter. During a bull market, investment in mid and small cap stocks will increase, while when the market is bearish, focus will be on stocks of large companies. This will keep the portfolio updated and investors will be able to get excellent returns.
3. Selecting better performing stocks:This fund will invest in stocks that have performed well in the last one year. It will exclude stocks that perform comparatively poorly.
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There will be opportunities for wealth creation in the Indian market: Patil
Speaking on the launch of the NFO, Harshad Patil, Executive Vice President and Chief Investment Officer (CIO), Tata AIA said, “India’s economy is going to grow manifold in the next few decades, which will provide great opportunities for wealth creation in the Indian stock market. This will enable businesses to increase their income and profits, which will also provide consistent good returns to policyholders. Through Tata AIA NIFTY Alpha 50 Index Fund, our policyholders can catch the market trends well, as this fund focuses on better performing stocks of different companies. In this way, we can provide long-term returns along with life insurance and health benefits to our customers.”
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Why invest in this NFO of Tata AIA?
Tata AIA Nifty Alfa 50 Index Fund’s NFO is an investment option that focuses on long-term capital growth. This fund invests in all types of stocks, large cap, mid cap and small cap, which diversifies your investment portfolio and helps reduce risk. This is the reason why investors in it will get a chance to take advantage of better investment opportunities in different market caps and sectors. This fund is right for those investors who have the ability to take more risk and want to invest for the long term. Apart from this, this fund is also a good option for those who like a combination of life insurance and financial security along with investment.
(Disclaimer: The purpose of this article is only to provide information, not to recommend investment. Take any investment decision only after consulting your investment advisor.)
