What is Bajaj Allianz Life Nifty Alpha 50 Index Fund?
Bajaj Allianz Life Nifty Alpha 50 Index Fund is a market-linked index fund which aims to mirror the returns of the Nifty Alpha 50 Index. This index consists of 50 stocks selected based on high return potential and low volatility.
Important Dates: You can invest in this Bajaj Allianz Life Nifty Alpha 50 index Fund NFO between 01 July 2024 and 15 July 2024.
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The Bajaj Life Nifty Alpha 50 Index Fund follows a passive investment strategy, where it replicates the performance of Nifty Alpha 50 Index.
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This index consists of 50 companies with high Alpha value among the top 300 large, medium and small market capitalization companies listed on the National Stock Exchange (NSE) of India.
Top 300 Stocks Holds:
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1st – 100th: Large Cap Companies
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101st – 250th: Mid Cap Companies
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251st Onwards: Small Cap Companies
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The Alpha is a measure of excess returns relative to a market index or benchmark.
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The weight allocation to these top 50 stocks from the Nifty Alpha 50 Index is decided in proportion to their Alpha score.
Reasons Why You Should Invest in Bajaj Allianz Life Nifty Alpha 50 Index Fund NFO
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Top Performance: This investment option tracks the Nifty 50 Index, achieving a 10-year benchmark return of 26.4%.
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Cost-Effective: The Bajaj Allianz Nifty Alpha 50 fund is available with Bajaj Allianz Goal Assure Plan at no additional charges.
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Exclusive NFO Opportunity: You can invest in this Bajaj Allianz index fund NFO at a special NAV price of ₹10 between the period 1st – 15th July 2024.
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Cost Effective Investment Option: Bajaj Allianz is offering this Nifty Alpha 50 index fund with Waiver of Premium (WOP) options starting from ₹2000.
| Plan Name |
Savings |
Child Plans |
Retirement |
| Capital Guarantee Solutions |
Starts at Rs. 2000 |
Starts at Rs. 2000 |
Starts at Rs. 3,900 |
| Unit Linked Insurance Plan (ULIP) |
- Bajaj Allianz Life Goal Assure Plan
(Starts at Rs. 3,000)
- Bajaj Allianz Smart Wealth Goal Plan
(Starts at ₹2,000) |
Bajaj Allianz Life Smart Wealth Goal + Waiver of Premium (WOP) Rider
-Starts at Rs. 2,000 |
Bajaj Allianz Life LongLife Goal Plan
-Starts at Rs. 2,500 |
*You can use an SIP Calculator to estimate your returns from regular contributions in these investment plans.
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Triple Benefits with Bajaj Allianz Smart Wealth Goal –WOP Plan: In case of your demise, the triple benefits payouts are provided along with the maturity benefits, where:
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Waiver of Premium (WOP) Benefit: Bajaj Allianz Life Insurance pays the future premiums of your Bajaj Allianz Investment Plan.
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Life Cover Benefit: In your absence, life cover is provided to your child, providing financial protection.
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Annual Income Benefit: Your family gets paid a regular income equal to one annual premium for the remaining policy term so that the family lifestyle is not compromised.
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Minimized Market Risk: The Bajaj Nifty Alpha 50 is a passive index fund, which reduces the risk of underperforming the market and ensures unbiased investing.
What is Alpha?
Alpha is used to measure how well your investment has performed compared to the benchmark index. It indicates whether an investment has gained more or less value than expected.
You can calculate the alpha of your investment by comparing the actual return of your investment with its expected return.
Interpretation of Alpha
Example: Stock A with a 15% return when the benchmark index returned 10%.
Alpha = 15% - 10% = 5% (Positive Alpha = Stock outperforms the benchmark)
Example: Stock B with a 9% return when the benchmark index returned 10%.
Alpha = 9% - 10% = -1% (Negative Alpha = Stock underperforms the benchmark)
What is the Nifty Alpha 50 Index?
The Nifty Alpha 50 Index is a National Stock Exchange (NSE) index that tracks the performance of 50 large, medium, and small cap companies that have shown high alpha value during the last one year.
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Specializes in High Alpha Stocks: It aims at companies that have shown strong returns relative to their risk in the past year.
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Well-rounded: This Bajaj Allianz Nifty Alpha 50 Index comprises 50 stocks, offering spread across various sectors of the Indian stock market.
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Alpha-driven: Each stock's weight in this index depends on its alpha, focusing more on high alpha stocks for greater influence on index performance.
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Suitable for Investment and Duplication: The Nifty Alpha 50 Index considers the liquidity and market capitalization of the stock to ensure it is feasible for investors to use and replicate.
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Quarterly Rebalancing for Market Sensitivity: Rebalances every quarter to swiftly respond to market changes, unlike semi-annual rebalancing of other indices.
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High Returns: The Nifty Alpha 50 Index has shown the best performance across all time periods in the equity market.
| Time Period |
Return Percentage |
| 5 Years |
32.90% |
| 10 Years |
26.40% |
If you invested Rs. 100 in the Nifty Alpha 50 index fund ten years ago, it's now worth Rs. 985, showing almost a tenfold increase.
Therefore, Invest in an INDEX FUND to SIT BACK, RELAX & EARN Returns as high as the Index Returns!
Sectoral Representation of the Nifty Alpha 50 Index
| Top Sectors |
Weightage of Invested Assets |
| Financial Services |
28.00% |
| Capital Goods |
18.59% |
| Power |
7.94% |
| Healthcare |
6.78% |
| Realty |
6.69% |
| Construction |
6.65% |
| Information Technology |
5.31% |
| Consumer Services |
4.87% |
| Metals & Mining |
4.05% |
| Automobile and Auto Components |
3.60% |
| Fast Moving Consumer Goods |
1.62% |
[Source: nseindia.com] *updated as of 26 June 2024.
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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