Tata AIA Life Insurance Expands New Fund Offering Suite

Tata AIA Life Insurance Expands New Fund Offering Suite – Introduces The Emerging Opportunities Fund

A mid-cap focused fund with multi-cap flexibility, that invests in companies with high growth potential

 NFO with Unit Linked Products opens from 15^th to 30^th December 2022, at NAV of INR 10.

 Mumbai, December 2022: Tata AIA Life Insurance (Tata AIA) has announced range of new funds including Eme rging Opportunity Fund, that will invest in mid-cap companies and emerging market leaders with the potential to generate significant future growth. The applications for ULIP plans with New Fund Offering (NFO) window will remain open from 15^th to 30^th December 2022, at NAV of Rs. 10.

Investments in the Funds can be made through Tata AIA’s ULIP offerings like Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima. In addition, Funds will also be attached to Tata AIA’s Param Rakshak Solutions. Th is offers consumers the unique opportunity to benefit from the long-term growth potential of equity while sec uring their loved ones with the protection of a life insurance cover.

The investment objective of the Fund is to generate capital appreciation in the long term by investing in a portfo lio of stocks that offer opportunities in the mid-cap space and emerging leaders in the new age sectors offering si gnificant long-term wealth creation along with insurance benefit.  The fund can invest up to 30% of the portfolio in equity and equity related instruments falling outside the mid-cap range.

This is an equity fund suitable for consumers who are looking to benefit from the long-term growth potential in equity and have relatively high-risk appetite. Mid-cap stocks usually go through a high degree of market volatil ity which tends to even out in the long term. An investor participating in this NFO should be comfortable avera ging out market volatility by staying invested to benefit from long-term compounding returns.

Harshad Patil, Executive Vice President and Chief Investment Officer (CIO), Tata AIA Life Insurance, said, “As mi d-cap companies continue to grow rapidly, investing in these stocks offers our policyholders a great opportunity to build wealth. Mid-cap stocks are likely to see healthy returns since India’s market is on a growth trajectory. Our ULIP funds ha ve performed well in comparison with benchmarks and are highly rated by rating agencies such as Morning Star. New fu nds such as the Emerging Opportunity Fund will offer our existing and new investors an opportunity to participate in the growth of the Indian markets through equity investments with the added benefit of life insurance.”

 “This Fund aims to invest in a portfolio of stocks in the mid-cap space and emerging leaders in the new age sectors. These new age companies are present across market caps. Most of them are leaders in the industries that they operate and pro vide a long runway for growth. With the new Fund’s ability to seamlessly move from mid and large cap bias to mid and s mall cap bias, we aim to capture such emerging long-term themes. This we believe is the key value-add of our new Fund offering”, he further added.

Tata AIA has a well-defined research process and methodology and takes a long-term view based on fundamen tal research. It follows a robust investment philosophy of portfolio construction through bottom-up stock selecti on by focusing on companies with sustainable earnings growth. Further, the investment team has been quite sta ble and has stayed with the company for long, ensuring a consistent investment approach. This has generated co nsistent risk-adjusted investment returns to meet investors’ long-term objectives and return expectations.

The below table showcases the performance of some of the existing equity funds of Tata AIA since inception in comparison to the benchmark returns.

*Data as on 30 November,2022. # Morningstar ratings as of 31^st October, 2022 on an overall basis

 **Inception dates: Whole Life Midcap Equity Fund: 10 Jan 2007, Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 5 Oct 2015

In addition to the impressive track record of its existing funds, Tata AIA’s ULIP funds have been rated very highly by fund trackers. 98.96% of the rated AUM of Tata AIA Life is rated either 4 star or 5 star on a 5-year basis as of October 31st 2022 by Morningstar Ratings*. Tata AIA Life had a total Assets Under Management (AUM) of INR 64,149 crore as of 31st October 2022. 

Historically, the Indian equity market has been generous to long-term investors who are patient and disciplined. Despite short-term volatility caused by geopolitical tensions, macroeconomic events, and global central bank in tervention, it has been resilient in the long run. As a result, it has added immense value to the wealth-creation ef forts of most investors who stayed the course and helped them meet their key investment goals.

About Tata AIA Life

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Pvt. L td. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region.

About the Tata Group 

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mis sion ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value cr eation based on Leadership with Trust’.Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture.In 2021-22, the revenue of Tata companies, taken together, was $128 billion (INR 9.6 trillion). These companies collectively employ over 935,000 people.

Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly-listed Tata enterprises with a combined market capitalisation of $311 billion (INR 23.6 trillion) as on March 31, 2022.Companies include Tata Consultancy Services, Tata Motors Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Indian Hotels, Tata Communications, Tata Digital, and Tata Electronics.

About AIA

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent pub licly listed pan-Asian life insurance group. It has a presence in 18 markets – wholly-owned branches and subsidi aries in Mainland China, Hong Kong SAR, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Mya n mar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR, and a 49 per cent joint venture in India.

The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market le ader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its m arkets. It had total assets of US$302 billion as of 30 June 2022.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and service s including life insurance, accident and health insurance and savings plans. The Group also provides employee be nefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners an d employees across Asia, AIA serves the holders of more than 40 million individual policies and over 17 million p articipating members of group insurance schemes.

 AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock co de “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).