Tata AIA Life Insurance has introduced a new ULIP investment option that combines momentum and value strategies to offer diversified equity exposure alongside life insurance protection.
Tata AIA Life Insurance has launched the Tata AIA Momentum Value 50 Index Fund, a new unit-linked investment option that combines momentum and value investment approaches with life insurance protection.
The fund will select companies from the BSE 500 universe based on momentum and value characteristics. It will track the BSE 500 Momentum Value 50 Index (Customised), subject to applicable Insurance Regulatory and Development Authority of India (IRDAI) investment regulations.
New ULIP fund combines two strategies
The new insurance investment option uses two established investment approaches. Momentum investing focuses on companies that show relatively strong market performance, while value investing looks for companies that appear attractively valued compared with their fundamentals.
Tata AIA said the combination aims to provide a systematic framework for participating in equity markets across different market cycles.
Harshad Patil, chief investment officer at Tata AIA Life Insurance, said the fund brings the two investment characteristics together through a systematic and transparent approach. He said this framework can help consumers participate in changing equity market opportunities.
The fund will invest 80% to 100% of its assets in equity and equity-related instruments. It can allocate up to 20% to cash, money-market instruments and mutual funds. The New Fund Offer opened on September 23 and will close on September 30, with units issued at ₹10 during the offer period.
Equity exposure with life insurance protection
The launch adds another market-linked option to Tata AIA’s life insurance portfolio. Unlike a standalone equity investment, the fund operates within a unit-linked insurance plan (ULIP), combining investment exposure with life insurance protection.
Tata AIA already offers index-linked ULIP funds, including its Momentum 50 Index Fund, which tracks a customised BSE 500 Momentum 50 index. The insurer’s existing fund invests 80% to 100% in equity and equity-related instruments.
The new product comes as insurers expand the range of market-linked investment choices available through insurance products. Index-based strategies can also provide a rules-based approach to portfolio selection rather than relying entirely on active stock selection.
The fund’s performance will depend on movements in the underlying equity markets and the index it tracks. As with other market-linked ULIP funds, returns are not guaranteed.
Tata AIA reported premium income of ₹38,164 crore in FY26, up 21% from the previous year, while its assets under management stood at ₹1,45,589 crore as of March 31, 2026, according to reports on the launch.
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