Tata AIA Life Insurance Expands New Fund Offering Suite – Introduces Emerging Opportunities Fund

Mumbai, 15 December 2022: Tata AIA Life Insurance (Tata AIA) has announced range of new funds including Emerging Opportunity Fund, that will invest in mid-cap companies and emerging market leaders with the potential to generate significant future growth. The applications for ULIP plans with New Fund Offering (NFO) window will remain open from 15th to 30th December 2022, at NAV of Rs. 10.

Investments in the Funds can be made through Tata AIA’s ULIP offerings like Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima. In addition, Funds will also be attached to Tata AIA’s Param Rakshak Solutions. This offers consumers the unique opportunity to benefit from the long-term growth potential of equity while securing their loved ones with the protection of a life insurance cover.

The investment objective of the Fund is to generate capital appreciation in the long term by investing in a portfolio of stocks that offer opportunities in the mid-cap space and emerging leaders in the new age sectors offering significant long-term wealth creation along with insurance benefit. The fund can invest up to 30% of the portfolio in equity and equity related instruments falling outside the mid-cap range.

This is an equity fund suitable for consumers who are looking to benefit from the long-term growth potential in equity and have relatively high-risk appetite. Mid-cap stocks usually go through a high degree of market volatility which tends to even out in the long term. An investor participating in this NFO should be comfortable averaging out market volatility by staying invested to benefit from long-term compounding returns.

Harshad Patil, Executive Vice President and Chief Investment Officer (CIO), Tata AIA Life Insurance, said, “As mid-cap companies continue to grow rapidly, investing in these stocks offers our policyholders a great opportunity to build wealth. Mid-cap stocks are likely to see healthy returns since India’s market is on a growth trajectory. Our ULIP funds have performed well in comparison with benchmarks and are highly rated by rating agencies such as Morning Star. New funds such as the Emerging Opportunity Fund will offer our existing and new investors an opportunity to participate in the growth of the Indian markets through equity investments with the added benefit of life insurance.”

“This Fund aims to invest in a portfolio of stocks in the mid-cap space and emerging leaders in the new age sectors. These new age companies are present across market caps. Most of them are leaders in the industries that they operate and provide a long runway for growth. With the new Fund’s ability to seamlessly move from mid and large cap bias to mid and small cap bias, we aim to capture such emerging long-term themes. This we believe is the key value-add of our new Fund offering”, he further added.

Tata AIA has a well-defined research process and methodology and takes a long-term view based on fundamental research. It follows a robust investment philosophy of portfolio construction through bottom-up stock selection by focusing on companies with sustainable earnings growth. Further, the investment team has been quite stable and has stayed with the company for long, ensuring a consistent investment approach. This has generated consistent risk-adjusted investment returns to meet investors’ long-term objectives and return expectations.

The below table showcases the performance of some of the existing equity funds of Tata AIA since inception in comparison to the benchmark returns.

*Data as on 30 November,2022. # Morningstar ratings as of 31st October, 2022 on an overall basis

**Inception dates: Whole Life Midcap Equity Fund: 10 Jan 2007, Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 5 Oct 2015

In addition to the impressive track record of its existing funds, Tata AIA’s ULIP funds have been rated very highly by fund trackers. 98.96% of the rated AUM of Tata AIA Life is rated either 4 star or 5 star on a 5-year basis as of October 31st 2022 by Morningstar Ratings*. Tata AIA Life had a total Assets Under Management (AUM) of INR 64,149 crore as of 31st October 2022.

Historically, the Indian equity market has been generous to long-term investors who are patient and disciplined. Despite short-term volatility caused by geopolitical tensions, macroeconomic events, and global central bank intervention, it has been resilient in the long run. As a result, it has added immense value to the wealth-creation efforts of most investors who stayed the course and helped them meet their key investment goals.