Tata AIA Life unveils multicap momentum quality index pension fund

Tata AIA Life Insurance’s latest NFO, the Multicap Momentum Quality Index Pension Fund comes into play which is designed to empower individuals with smarter, market-linked solutions that help them build a robust retirement corpus while staying in control of their financial future.

The new fund offer or NFO is open for subscription and will close on February 28.

Retirement planning is not just about saving—it’s about growing your wealth while managing risks. Tata AIA’s new fund is structured to capture market growth opportunities while ensuring portfolio stability through a quant-based investment strategy.

By investing in this fund, policyholders can benefit from long-term capital growth, smart diversification, risk-optimized investing, convenient retirement planning, and easy access.

The investment focus is on companies aligned with the Multicap Momentum Quality 50 Index. The fund will allocate 80%-100% in equity and equity-related instruments, 0%-20% in cash & money market securities

The risk profile is designed to provide high returns with managed risk, ensuring stability and the fund management charge (FMC) is 1.35% per annum.

It invests across market cap segments, benefiting from the stability of large-caps and high growth potential of mid and small-cap stocks. Focuses on momentum-driven, quality stocks to optimize returns while ensuring the portfolio's fundamental strength.

It invests 80%-100% in equity & equity-related instruments and 0%-20% in cash and money market instruments, ensuring an effective balance between growth and liquidity. The fund aligns with the multicap momentum quality 50 index, adhering to the principles of disciplined, rule-based investing.

“Retirement planning today requires a smarter, more strategic approach. The Multicap Momentum Quality Index Pension Fund is designed for investors who want to benefit from India’s economic growth while securing their future. By blending momentum and quality investing, we aim to deliver superior risk-adjusted returns, helping our policyholders achieve financial independence in their retirement years,” said Harshad Patil, Chief Investment Officer, Tata AIA.

With India’s economy set for long-term expansion, this fund enables policyholders to participate in the country’s growth story while securing their retirement goals. Whether you’re an early planner or someone looking to maximize returns closer to retirement, this fund offers a powerful way to grow your wealth.

“In India, retirement planning has long been centered around using up personal savings or counting on family support, but this is changing rapidly. We are committed to making this transition smoother through solutions that are easily accessible. In partnership with Tata AIA, we are excited to introduce a pension fund that not only focuses on wealth creation but also ensures portfolio stability and caters to a diverse range of investors. It is a forward-thinking approach to financial planning that also allows individuals to benefit from the growth of the Indian economy,” said Santosh Agarwal, Chief Business Officer - Life Insurance, Policybazaar.

Amreesh Kher, Chief Business Officer, Insurance, Tata Digital said, "Navigating retirement investments can feel overwhelming. Tata Neu* simplifies this process with a user-friendly platform where you can explore Tata AIA's Smart Pension Secure plan, with a new fund offering (NFO) of the Multicap Momentum Quality Index Pension Fund. This fund offers investors a strategic opportunity to participate in India's growth story, with a quant-based strategy that balances risk and return. From accessing fund details to initiating your investment in just a few clicks, Tata Neu makes planning for your golden years remarkably straightforward."

As of 31st January 2025, Tata AIA has grown its Assets Under Management (AUM) significantly to Rs 118,721 crore, translating to 27.36% YoY growth. This has been possible due to robust Individual New Business Premium income and exceptional investment performance.

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