Sustainable Equity Fund will invest in equity and equity-related instruments of ESG companies, while Dynamic Advantage Fund will diversify between equity and debt. Both are available at net asset values of Rs 10 per unit. New fund offers open since March 18, 2023
Tata AIA Life Insurance has launched the new fund offers (NFOs) of two products – Sustainable Equity Fund, and Dynamic Advantage Fund at net asset values (NAVs) of Rs 10 per unit. The NFOs opened on March 18, 2023, Tata AIA Life Insurance announced in a press statement.
According to Tata AIA Life Insurance, the Sustainability Equity Fund will seek to generate capital appreciation in the long term by investing in companies that adopt sustainable or environmental, social and governance (ESG)-friendly practices. The fund will invest 80-100 per cent in equity and equity-related instruments following ESG criteria, and up to 20 per cent in other equities, debt, or money market instruments.
As part of the fund’s core philosophy, Tata AIA Life Insurance will plant a sapling that will be geo-tagged and provide a digital certificate of the same to every policy holder, investing in this fund, the insurer said.
Elsewhere, Tata AIA’s Dynamic Advantage Fund will dynamically allocate the investment corpus between equity and debt, depending upon market conditions, and aim to generate superior and steady return despite market volatility, Tata AIA Life Insurance said.
According to the insurer, buyers can invest in the two NFOs through Tata AIA Life Insurance’s unit-linked insurance plans (Ulips), namely, Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima, and other investment-linked protection products, such as Param Rakshak and Sampoorna Raksha Supreme.
Tata AIA Life Insurance said that the two products will help consumers benefit from market-linked returns, while also securing their loved ones with the protection of a life insurance cover.
Harshad Patil, executive vice-president and chief investment officer (CIO), Tata AIA Life Insurance, said: “Protecting our future is crucial in these times of volatility and economic uncertainty. At the same time, we are witnessing significant climatic changes, clearly revealing the negative impact of rapid urbanisation and development on our planet. Keeping this in mind, we have come up with two unique NFOs that will enable investors to tide through these challenges while contributing to a better future of our planet.”
He added: “Tata AIA’s Sustainable Equity Fund offers investors a unique opportunity to benefit from sustainable investment avenues to secure their financial future while helping create a better tomorrow for mankind. It may be noted that echoing these trends, the ESG 100 index in India has given better returns than the broader Nifty 50 or 100 index over three- and five-year duration.”
“The Dynamic Advantage Fund aims to provide investors returns despite volatile market conditions. It will do so by dynamically investing in a combination of equity and debt avenues. Investors can thus benefit from the growth potential of equity, while benefiting from the downside protection that debt fund investments offer. Investors no longer need to closely track the markets and rebalance their
portfolio manually, a task nearly impossible given the sharp and regular market movements,” he further said.