Tata AIA Life Insurance has launched its first dedicated Small-Cap fund, Tata AIA Small Cap Discovery Fund, offering policyholders long-term capital appreciation through investing in small-cap market capitalization stocks. The NFO window is open from July 10 to July 24, 2023, at Rs. 10 per unit.
Small-cap stocks make up over 4500 Indian companies, with 500 having market caps above Rs. 2000 crore. These stocks offer a diverse range of investment opportunities, but are also susceptible to high volatility due to market dynamics. To fully enjoy returns from these funds, investors need a longer investment horizon. Nifty Small Cap 100 trades at a deeper discount than Nifty 50, offering better returns over 1 year (14.3%), 3 years (41%), and since inception (13.6%).
Tata AIA funds have beaten benchmarks over multiple time periods. Mr.Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA Life Insurance, said, “Given these forces, the Tata AIA Small-Cap Discovery Fund offers our policyholders a great opportunity to maximize their investment by spotting such opportunities early and investing in them over the medium to long term.”
