Bajaj Allianz Life has launched India’s first Small Cap fund in the ULIP segment. In a statement, the insurer said that the fund will offer customers an opportunity to achieve capital appreciation by investing in a diversified portfolio of small-cap stocks.
Bajaj Allianz Life Small Cap Fund will track Nifty Small Cap 100 index. The New Fund Offer (NFO) for Bajaj Allianz Life’s Small Cap Fund will end on 23 May, 2023.
Investment strategy
As per the statement, the equity investment strategy of the Bajaj Allianz Life Investment team revolves around identifying companies with a competitive advantage, good corporate governance, high ROE/ROCE, robust free cash flow, growth visibility and attractive valuations.
Also Read: India’s first Defence Mutual Fund launched by HDFC AMC. What is it and where will it invest? NFO details here
“The underlying philosophy is to uncover businesses with large market opportunities and prioritize Growth at a Reasonable Price from a valuation perspective. Bajaj Allianz Life Small Cap Fund will invest minimum 60% in small cap stocks, Market-cap exposure is based on equity exposure re-scaled to 100%,” the company said.
Why invest in Small-Cap Fund?
- Customers may consider some of the key points while investing in the Bajaj Allianz Life Small-Cap Fund:
- Small-cap fund category has seen significant traction from investors in the other financial saving avenues, over the past few years
- Small-cap equity funds have managed to outperform the benchmark Nifty Small Cap 100 index by a significant margin over the long term.
- Nifty Small-cap 100 index valuation has moderated from its highs and is now below the long-term average, making a case for investment in small-caps from a valuation perspective.
Commenting on the new fund, Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance, said “We are thrilled to launch the first-of-its-kind small cap fund in the life insurance industry, with the focus on long-term wealth creation for our customers. We are confident that this fund will strongly resonate with investors and support them in the journey towards achieving their life goals.”
(Disclaimer: The above content is based on a press release from Bajaj Allianz Life. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing. Facts and opinions expressed here are that of the respective commentators. The opinions expressed here do not reflect the views of https://www.financialexpress.com)
