Tata AIA Life Insurance Unveils Small Cap Discovery Fund: NFO To Close On July, 24

One of the top life insurers in India, Tata AIA Life Insurance (Tata AIA), has introduced Tata AIA Small Cap Discovery Fund, its first specialised small-cap fund. The New Fund will provide policyholders with the opportunity to participate in stocks with small market capitalizations and produce capital growth over the long term. From July 10 to July 24, 2023, the New Fund Offering (NFO) window will be available at a price of Rs. 10 per unit, which is only valid during the NFO period.

Commenting on the launch of the Small-Cap Discovery Fund, Mr. Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA Life Insurance, said, "The Government is focused on formalising the economy during the Amrit Kaal, which will benefit small businesses immensely. Further, growth in consumption demand, rising disposable income, and support for manufacturing will catalyse several smaller companies to become dominant in their sectors. Given these forces, the Tata AIA Small-Cap Discovery Fund offers our policyholders a great opportunity to maximise their investment by spotting such opportunities early and investing in them over the medium to long term."

The Tata AIA Small Cap Discovery Fund will invest up to 65% of its funds into strategically selected small-cap companies and allow investors the chance to invest in reputable small firms with the potential to develop into mid- and large-cap corporations.
Tata AIA Life Insurance said in a statement that "Tata AIA policyholders can invest in this fund through the Company's ULIP offerings, Fortune Pro, Wealth Pro, Fortune Maxima, Wealth Maxima, i Systematic Insurance Plan and Smart Sampoorna Raksha Plus. In addition, this 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," Tata AIA further added.

The company's total Asset Under Management (AUM) climbed by 30% to INR 75,192 Cr in FY23 from INR 57,927 Cr in FY22. As of March 31st, 2023, 99.10% of Tata AIA Life rated AUM is rated either 4 stars or 5 stars on a 5-year basis by Morningstar Ratings. As of March 31st, 2023, on a 5-year basis, 7 of the 11 funds that are open to new business are rated 5 stars, while 4 are rated 4 stars. Whole Life Aggressive Fund, India Consumption Fund, Multicap Fund, Whole Life Stable Fund, Large Cap Equity Fund, Whole Life Income Fund, and Top 200 Fund are seven funds that have received a five-star rating. Top 50 Fund, Whole Life Short Term Fixed Income Fund, Whole Life Midcap Fund, and Super Select Equity Fund are the four funds with a 4-star rating.