Tata AIA Insurance unveils Midcap Momentum Index Fund: Here are the details

Tata AIA Life Insurance (Tata AIA) has launched the Midcap Momentum Index Fund, which aims to invest in high-growth mid-sized companies in India. It tracks the 50 top-performing stocks of such companies depending on their recent performance within a larger group of 150 mid-sized companies.

At a net asset value (NAV) of ₹ 10 per unit, the new fund offering (NFO) window will remain open till June 15, 2024. The fund management charges will be 1.20% of the total investment amount per annum.

Understanding Midcap Momentum Index Fund

The Midcap Momentum Index Fund will mimic the Nifty Midcap 150 Momentum 50 index. This index mirrors the performance of the top 50 high-growth companies within the Nifty Midcap 150, selected based on their normalised momentum score.

The normalised momentum score facilitates the momentum investing strategy. This is based on choosing stocks that have demonstrated strong performance in the recent past and expect the likely continuation of this upward trend.

The fund composition comprises about 80-100% in equity and equity-related instruments, 0-20% in cash, and money market securities.

As the fund invests in a variety of companies, it helps spread out the risk. This fund is designed for investors looking to invest for the long term in a bid to gain from good returns.

Considering that the country’s economy is anticipated to grow significantly in the coming years, mid-sized companies are well-positioned to benefit from this development.

Existing Tata AIA Life Insurance policyholders who wish to invest in this fund can do so via their existing plans or through new plans that offer this option.

Tata AIA Life Insurance offers an opportunity to invest in potentially high-growth companies while still having the security of life insurance coverage.

Tata AIA policyholders can invest in this new fund through the company’s Unit-Linked Insurance Plan (ULIP) offerings, including Fortune Pro, Wealth Pro, and Fortune Maxima, among others. The policyholders can also invest in the fund through ILP solutions such as Param Rakshak Plus and Pro-Fit, which offer multiple benefits across health, wellness, and life cover.