Bajaj Allianz Life has announced a new addition to its unit-linked insurance plan (ULIP) lineup, the Bajaj Allianz Life Nifty 500 Multifactor 50 Index Fund. The fund is available to investors during the new fund offer (NFO) period starting July 1, 2025.
NFO Launch: Bajaj Allianz Life Launches Nifty 500 Multifactor 50 Index Fund, Know Key NFO Details
Here’s what you need to know about the new Ulip-linked fund, including its objective, investment strategy, and who it may be suitable for
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NFO Details
The NFO will remain open until July 14, 2025. The fund tracks the Nifty 500 Multifactor MQVLv 50 Index, which includes 50 equities chosen from the Nifty 500 universe using a rules-based methodology. It is available through Bajaj Allianz Life’s Ulips.
According to the insurer, the index is constructed using a combination of four predefined investment factors: Momentum, Quality, Value, and Low Volatility. These include price momentum over six and twelve months (adjusted for volatility), financial quality based on return on equity, leverage, and earnings consistency, valuation metrics, such as earnings-to-price, book-to-price, sales-to-price ratios, and dividend yield as well as measures of price stability over the past year.
Srinivas Rao Ravuri, chief investment officer at Bajaj Allianz Life Insurance, said in a press release, “In today’s environment of heightened market volatility, a factor-based passive strategy presents a smart and disciplined way to stay invested.” He said the fund introduces a multifactor index strategy under the company’s Ulip offerings and applies a combination of four factors: Momentum, Quality, Value and Low Volatility, to build a diversified portfolio aimed at providing systematic, rules-based exposure to equities.
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Who Should Invest?
According to Bajaj Allianz Life, the fund is meant for investors with a high risk appetite who aim for long-term capital growth through a systematic, factor-based investment in Indian equities. Since it is linked to a multifactor equity index, the fund is intended for those comfortable with market volatility and seeking disciplined, rules-based investing through Ulips.
The Nifty 500 Index functions as the broader universe for the fund's benchmark. It includes the top 500 companies based on full market capitalisation and average daily turnover, and represents around 92.29 percent of the free-float market capitalisation of all stocks listed on the NSE.
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