Tata AIA Life Insurance (Tata AIA) has launched a new Emerging Opportunities Fund that will invest in mid-cap companies and emerging market leaders. The New Fund Offering (NFO) window will remain open from 15th December to 30th December 2022 at Rs 10 per unit, which is applicable only during the NFO period.
In a statement, the company said that investment in the Emerging Opportunities Fund can be made through Tata AIA’s ULIP offerings like Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima. The Fund 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 statement said.
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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. The fund can invest up to 30% of the portfolio in equity and equity-related instruments falling outside the mid-cap range.
Who should invest?
This is an equity fund suitable for investors who are looking to benefit from the long-term growth potential in equity 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 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.
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Commenting on the NFO, 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 Opportunities 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,” he added.
(Disclaimer: The above content is based on a statement from TATA AIA Life Insurance. Mutual Fund investments are subject to market risks. There is no assurance or guarantee that a scheme’s objective will be met. Please consult your financial advisor before investing in mutual funds)