Bajaj Allianz Life Insurance announced the launch of the Bajaj Allianz Life Sustainable Equity Fund on February 03, 2023. As this is a ULIP fund, the fund is open-ended, i.e., the customer can switch out of this fund and opt for another fund available with the product. However, as per regulation, the ULIP product has a lock-in period of five years.
This famous life insurance company offers an opportunity to its customers to park their earnings in companies that are socially responsible and have been assessed on ESG factors.
Q. Who can invest in this fund?
Various companies are now being evaluated regarding their effects on their customers and society as a whole.
Speaking on the launch of the fund, Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance said, “I believe the Bajaj Allianz Life Sustainable Equity Fund will strongly resonate with our customers. It offers them a strong proposition to fulfil life goals while ensuring the ESG quotient of their decisions remains strong. This will enable us to collectively contribute towards building a strong ESG ecosystem. At Bajaj Allianz Life Insurance we will continue to focus on every aspect of our customers’ requirements to ensure their life goals journey remains strong with us.”
Q. What is the main objective of investing in this ULIP fund?
The purpose of putting money in ULIPs is to avail of the dual benefits of both wealth accumulation and life insurance. The insurance company invests a portion of your investment in life insurance and the rest in funds based on equity, debt, or both. the goal. Only those yearning for investment and insurance must consider investing in this fund.
Q. How will the scheme benchmark its performance?
Considering how the performance of this fund will be benchmarked to the Nifty 100 ESG Index, investors looking to put their money in businesses with high ESG scores can invest in this fund containing stocks that are included in benchmark ESG indices.
The fund house will evaluate organizations based on its internal proprietary ESG factor model, which will assess data such as public disclosures, investor presentations, annual reports, etc. Thereafter, ESG principles combined with the existing investment decision-making process will allow the screening of stocks for the fund.
Q. Are there other ESG funds in India?
The concept of ESG investing in India is relatively new though there are 3000 ESG schemes available for investments worldwide. Increased investments into ESG funds gained attention during the Covid-19 pandemic, post which many people in the country preferred investing in businesses that are not only sustainable but also adhered to the environment, social and governance business practices.
The popular ESG funds in India include
|Name of the Fund||CAGR to date|
|Aditya Birla Sun Life ESG Fund||7.6%|
|SBI Magnum Equity ESG Fund||11.7%|
|Mirae Asset Nifty 100 ESG Sector Leaders Fund of Fund||13%|
|Quantum India ESG Equity Fund||15.1%|
|Invesco India ESG Equity Fund||9.7%|
|ICICI Prudential ESG Fund||13.7%|
|Axis ESG Equity Fund||13.6%|
|Quant ESG Equity Fund||39.3%|
|Kotak ESG Opportunities Fund||8.3%|
How to invest in this fund?
The minimum amount will depend upon the product opted. The fund is available with five ULIP products of Bajaj Allianz Life Insurance. Investors may consider putting their money in this fund through lump sum investments and systematic investment plans (SIPs). Both direct and regular plan options are available, thus, enabling investors to invest directly in this fund or avail of the benefits of handholding by a personal finance advisor.
The fund will open in the market on February 17, 2023 and the NAV details will be available post that on the company’s website. The allotment of the fund is subject to policy issuance. Will depend upon the product offered, however, most of our products offer monthly payment frequency.
Q. Why invest in Bajaj Allianz Life Sustainable Equity Fund?
If you believe in the effectiveness of both investments and insurance, then this plan may work well for you considering how this fund would be available with the company’s flagship Unit Linked Insurance Plans (ULIPs) which include:
- Bajaj Allianz Life Goal Assure - A Unit-linked Non-Participating Life Insurance Plan
- Bajaj Allianz Life Smart Wealth Goal - A Unit-linked Non-Participating Life Insurance Plan
- Bajaj Allianz Life Future Wealth Gain - A Non-Participating, Unit-Linked, Individual, Endowment Life Insurance Plan
- Bajaj Allianz Life Long Life Goal - A Unit-Linked Non-Participating Whole Life Insurance Plan
- Bajaj Allianz Future Gain - A Unit-Linked Endowment Insurance Plan.