Tata AIA Life Insurance (Tata AIA) on Thursday launched the Emerging Opportunity Fund which will invest in mid-cap companies and emerging market leaders with significant future growth potential.
The new fund offer will remain open till December 30, 2022, at ₹10 per unit, applicable just during the NFO period, as per the press release.
How can you invest?
This fund is available through Tata AIA's ULIPs Fortune Pro, Wealth Pro, Fortune Maxima, and Wealth Maxima. Aside from that, the operation of this fund will be linked to Tata AIA's Param Rakshak Solutions.
This provides consumers with a one-of-a-kind opportunity to benefit from the long-term growth potential of equity while also protecting their loved ones with life insurance coverage.
Who should invest?
The fund's investment objective is to generate long-term capital appreciation by investing in a portfolio of stocks that offer opportunities in the mid-cap space and emerging leaders in new-age sectors that offer significant long-term wealth creation as well as insurance benefits. The fund may invest up to 30 percent of its portfolio in equity and equity-related instruments that are not mid caps.
This is an equity fund suitable for consumers looking to benefit from the long-term equity growth potential and have a 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 compared to 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 their industries 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," added.