Tata AIA Life Insurance on Tuesday launched a new fund called Tata AIA Multicap Momentum Quality Index Fund, which will close on December 31, follows a factor-based investment strategy emphasising momentum and quality.

This fund will seek long term capital appreciation by investing in a portfolio of stocks that replicate the Nifty 500 Multicap Momentum Quality 50 Index benchmark by employing a disciplined, rule-based approach.

The investments span across largecap, midcap and smallcap stocks, with an asset allocation of 80-100% in equity and equity-related instruments, the remaining 0-20% is allocated to cash or money market instruments for effective liquidity management.

Tata AIA policyholders can invest in this fund through the company's unit linked insurance plans. These include the TATA AIA Param Raksha solutions and the Tata AIA Pro-Fit plan.

These offerings combine the long-term growth potential of equity investments with the essential life and health insurance coverage needed to protect consumers and their families.

Harshad Patil, Vice-President and Chief Investment Officer of Tata AIA said “The Tata AIA Multicap Momentum Quality Index Fund is a thoughtfully designed offering that blends the benefits of momentum-driven stock selection with the assurance of quality and diversified investments.”

Key factor of Multicap Momentum Quality Index Fund:

It invests in a diversified mix of large-cap, mid-cap, and small-cap stocks using a momentum and quality-based strategy.

Focuses on momentum-driven, It selects stocks showing strong price growth, indicating high market potential. Quality stocks comprises only companies with solid financials and consistent performance are chosen, to optimise returns while ensuring the portfolio's fundamental strength.

By investing across different market caps, the fund spreads risk and targets growth from both established and emerging companies. And also ensures an effective balance between growth and liquidity.

The fund aligns with the Nifty 500 Multicap Momentum Quality 50 Index, adhering to rule-based investing approach, follows the principles of disciplined, transparent, and periodic rebalancing process to maintain alignment with its strategy.