Tata AIA Life is launching an open-ended New Fund Offering (NFO) Tata AIA Life Midcap Momentum Index Fund from 1-15th June 2024. This index fund specifically focuses on the momentum strategy by including the top 50 mid-cap stocks exhibiting strong momentum on the benchmark NIFTY Midcap 150 Momentum 50 Index.
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Plans starting from₹1000/month
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
What is the Tata AIA Life Midcap Momentum Index Fund?
Tata AIA Life Midcap Momentum Index Fund is a market-linked fund that is designed to track and replicate the benchmark Nifty Midcap 150 Momentum 50 Index.
This Tata AIA NFO 2024 starting on June 1 and ending on June 15, 2024, aims to provide you with returns that mirror the performance of the NIFTY midcap 150 momentum 50 index. This index comprises 50 high-momentum mid-cap stocks listed on the NIFTY stock exchange based on returns of the past 6 months and 12 months.
Highlights of Tata AIA Life Midcap Momentum Index Fund
Particulars
Details
Investment Objective
The Tata AIA Midcap Momentum Fund aims to achieve strong, long-term investment growth by putting money into high-performing mid-sized companies. It particularly invests in funds that are included in the Nifty Midcap 150 index.
Rs. 2,000 per month (with Tata AIA Fortune Pro Plan)
Reasons Why You Should Invest in Tata AIA Life Midcap Momentum Index Fund
Here are the top reasons why considering the Tata AIA Mid Cap Fund can be a smart move:
Exceptional Performance: With an impressive 10-year return rate of 28.6%, this fund stands tall as one of the best-performing midcap index funds in the market. Its consistent performance reflects its ability to capitalize on the growth opportunities presented by mid-sized companies.
Top 50 Companies: By investing in the top 50 companies from the midcap universe, this fund ensures exposure to a diversified portfolio of promising businesses.
Elimination of Fund Manager Bias: Unlike traditional actively managed funds, the Tata AIA Life Midcap Momentum Index Fund operates without any fund manager bias. This means investment decisions are driven solely by the momentum of the market, ensuring transparency and objectivity in the investment process.
Diverse Product Categories: Whether you're an individual investor, a family, or a corporate entity, this fund caters to a wide range of product categories, making it accessible to various investor profiles. Whether you prefer regular premium, single premium, or limited premium payment options, there's a suitable plan for you.
Comprehensive Coverage: The fund offers popular Premium Payment Term (PT) and Policy Term (PPT) combinations. Starting at an affordable price of Rs. 2000, investors can enjoy the peace of mind knowing their financial well-being is protected while they focus on maximizing returns.
Exclusive Offer for Policybazaar: For investors looking for a unique opportunity, the Tata AIA Life Midcap Momentum Index Fund is extending an exclusive offer through Policybazaar. This offer allows investors to enter the market at the Net Asset Value (NAV) of ₹10, providing early access to a fund with a proven track record and a strategy geared towards long-term growth.
A Midcap Momentum Index Fund invests in mid-sized companies that are experiencing strong price growth, aiming to ride that momentum. Here's how it works:
Tracks a specific index, like Nifty Midcap 150 Momentum 50.
Index picks the top 50 mid-cap stocks based on a "momentum score" (recent price return adjusted for volatility).
The fund holds these 50 stocks in the same proportion as the index.
Rebalances twice a year to keep pace with the index.
This strategy targets companies that have been doing well and might continue to grow. Remember, past performance isn't a guarantee of future results, and this type of fund can be more volatile than some.
Sector Representation of the Midcap Momentum Index Fund
Top Sectors
Weightage of Invested Assets
Financial Services
28.63%
Healthcare
18.76%
Capital Goods
16.89%
Realty
9.30%
Metals & Mining
6.46%
Automobile and Auto Components
5.57%
Chemicals
4.47%
Information Technology
4.14%
Power
3.86%
Textiles
0.62%
Construction Materials
0.57%
Media, Entertainment & Publication
0.49%
Consumer Durables
0.26%
[Source: nseindia.com]
Companies of NIFTY Midcap 150 Momentum 50
[Source: nseindia.com]
Performance of Midcap Momentum Index Fund
Index Name
3-Year Returns
5-Year Returns
10-Year Returns
NIFTY Midcap 150 Momentum 50
35.1%
31.2%
28.6%
NIFTY Midcap 150
27.8%
26.1%
20.8%
NIFTY Smallcap 250
26.8%
25.1%
17.8%
NIFTY 50
15.8%
15.3%
13.5%
[Source: nseindia.com]
About Tata AIA Life Insurance
TATA AIA Life Insurance, a joint venture of Tata Sons Pvt. Ltd. and AIA Group Ltd. The Assets Under Management (AUM) exceed 1 lac Cr+. With a stellar claim settlement ratio of 99.01%, it ensures security for policyholders. Over 90% of its funds are rated 4 or 5 stars by Morningstar, consistently outperforming benchmarks. Trusted for its financial stability and commitment to excellence, TATA AIA stands as a reliable partner in safeguarding dreams and securing futures. Tata AIA has offered best in class returns in the previously launched Tata AIA NFO 2024:
Funds
Emerging Opportunities Fund
Small-Cap Discovery Fund
Flexi Growth Fund
Returns Since Inception
49.5%
54.3%
13.5%
How to Buy Tata AIA Life Midcap Momentum Index Fund from Policybazaar?
To buy the Tata AIA Mid Cap Fund from Policybazaar, follow these steps:
Step 1: Fill in your name and contact number in the form on this page to get started.
Note: Your details are kept confidential and will only be used to customize your benefits.
Step 2: You can also visit the plans just by clicking view plans below
Step 3: Once logged in, you'll be prompted to fill in your city, age, and annual income in the provided form. This information will be used to check the personalised benefits of the plans.
Step 4: After providing your personal information, you'll be presented with Tata AIA Investment Plans on a blue and red card. Select the Tata AIA Life Midcap Momentum Index Fund option that best suits your needs from the following options:
Tata AIA Life Capital Guarantee Solution
Tata AIA Life Fortune Pro + Guaranteed Return Insurance Plan
Tata AIA Life Fortune Pro + Smart Income Plan
Tata AIA Life Smart Sampoorna Raksha Plan
Tata AIA Life Fortune Maxima
Step 5: In the Tata AIA Mid Cap Fund, click the "Get Details" tab for more information.
You can also get FREE expert consultation; just click on the talk to an expert button.
Step 6: Review the details of the plan carefully. Once satisfied, click on the "Proceed" button and follow the prompts on the screen to move forward with the purchase.
Step 7: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred mode of payment for your investment.
Step 8: Provide your required KYC (Know Your Customer) details. This step is essential for regulatory compliance.
Step 9: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
What are the Benefits of Purchasing the Tata AIA Life Midcap Momentum Index Fund from Policybazaar?
Investing through Policybazaar offers a range of valuable benefits:
Convenience: With Policybazaar, you can invest in the Tata AIA Life Midcap Momentum Index Fund online, eliminating the need for physical visits to banks or insurance agents.
Comparison: Policybazaar provides a platform to compare various plans, including new funds. This ensures that you have all the necessary information to make an informed decision and secure the best deal available in the market.
Expert Guidance: Policybazaar boasts a team of financial experts who are ready to assist you in selecting the most suitable NFO plan based on your specific requirements and financial goals.
Tax Advantages: Investing in the Tata AIA Life Midcap Momentum Index Fund through Policybazaar can lead to tax benefits under Section 80C and Section 10(10D) of the Income Tax. The platform helps you understand and navigate the potential tax advantages associated with your investment, optimizing your financial planning.
Frequently Asked Questions
Under which plan can we avail of the benefits of Tata AIA Life Midcap Momentum Index Fund?
The Tata AIA Life Midcap Momentum Index Fund is available with the following investment plans offered by Tata AIA Life:
Is it good to invest in the Tata AIA Life Midcap Momentum Index Fund?
The Tata AIA Life Midcap Momentum Index Fund is a good investment option for investors who are looking for exposure to the mid-cap segment of the Indian stock market and who are comfortable with the associated risks. However, it is important to do your research and consider your own investment goals before making any investment decisions regarding the Tata AIA Life Midcap Momentum Index Fund
Who should invest in the Tata AIA Life Midcap Momentum Index Fund?
The following category of investors might be suitable for investing in Tata AIA Life Midcap Momentum Index Fund:
Investors with belief in the effectiveness of momentum investing
Investors who believe in the potential of mid-cap stocks
How does the Tata AIA Life Midcap Momentum Index Fund benchmark its performance?
The Tata AIA Life Midcap Momentum Index Fund benchmarks its performance against the Nifty Midcap 150 Momentum 50 index.
What are the tax implications under the Tata Life Midcap 150 Momentum 50 Index Fund?
You can avail of the following tax benefits of investing in the Tata AIA Life Midcap Momentum Index Fund:
Section 80C Advantage: You can claim tax benefits under Section 80C of the Income Tax Act, 1961. It allows a deduction of up to ₹1.5 lakhs from taxable income for the invested amount in the Tata AIA Life.
Section 10(10D) Benefits: You can utilize Section 10(10D) benefits for your investments in Tata AIA Life New Fund Offering (NFO). This benefit is applicable if the annual premium paid is below Rs. 2.5 lakh.
What are the differences and similarities between the Tata Nifty Midcap 150 Momentum 50 Index Fund and ICICI Pru Life Midcap 150 Momentum 50 Index Fund?
The key similarities and differences among Tata Nifty Midcap 150 Momentum 50 Index Fund and ICICI Pru Life Midcap 150 Momentum 50 Index Fund are mentioned below:
Similarities:
Midcap Momentum Funds: They invest in a portfolio of 50 mid-cap companies (out of the Nifty Midcap 150 index) exhibiting strong momentum (rising share price).
Passively managed: They track the Nifty Midcap 150 Momentum 50 Index, aiming to replicate its performance (before expenses).
Investment objective: Both aim to provide returns comparable to the Nifty Midcap 150 Momentum 50 Index.
Differences:
Tata Nifty Midcap 150 Momentum 50 Index Fund is offered by Tata Asset Management.
ICICI Pru Life Midcap 150 Momentum 50 Index Fund is offered by ICICI Prudential Mutual Fund.
Both funds aim to track the Nifty Midcap 150 Momentum 50 Index closely, but they might have slight deviations due to factors like cash holdings and expense ratios.
What is the NAV of Tata AIA Life Midcap Momentum Index Fund NFO?
The starting Net Asset Value of Tata AIA Life NFO is Rs. 10 per unit from 1 June up to 15 June 2024.
How safe is Tata Mutual Funds?
Yes, the Tata Mutual Fund, as a whole, operates within a safe and regulated environment. The following are some of the factors that ensure the safety of your investments:
Tata MF is regulated by the Securities and Exchange Board of India (SEBI)
Tata MF offers a wide range of schemes catering to different risk appetites and investment goals.
What are other funds having the same benchmark as Midcap 150 Momentum 50 Index?
The funds having the same benchmark are:
Tata AIA Life Midcap Momentum Index Fund
HDFC Life Midcap Momentum Fund
ICICI Pru Midcap 150 Momentum 50 Index Fund
Max Life Midcap 150 Momentum 50 Index Fund
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *Past 10 Year annualised returns as on 01-11-2024 *All savings plans are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 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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