Tata AIA Life Insurance (Tata AIA), one of India’s leading life insurers, has launched its first dedicated Small-Cap fund, Tata AIA Small Cap Discovery Fund. New Fund offers long-term capital appreciation through investing in small-cap market capitalisation stocks for policyholders. The New Fund Offering (NFO) window will remain open from July10to July24, 2023, at Rs. 10 per unit, applicable only during the NFO period.
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. Tata AIA’s research process and methodology drive a 30% increase in AUM to INR 75,192 Cr as of May 31st, 2023.
Tata AIA Life Insurance’s Executive Vice President and Chief Investment Officer, Harshad Patil, highlighted the launch of the Small-Cap Discovery Fund. He stated, “Given these forces, the Tata AIA Small-Cap Discovery Fund offers our policyholders a great opportunity to maximise their investment by spotting such opportunities early and investing in them over the medium to long term.”
