Bajaj Allianz Life Insurance Introduces Nifty 200 Alpha 30 Index Fund – NFO closes on September 15

Bajaj Allianz Life Insurance has introduced the Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund, which will be available alongside its Unit Linked Insurance Plans (ULIPs). This new fund is to provide an opportunity for investors seeking to capitalise on high-alpha stocks while benefiting from a diversified, index-based investment approach combined with life insurance cover.

The New Fund Offer (NFO) for the Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund will close on September 15, 2024. The fund focuses on high-alpha stocks, which are stocks that outperform market expectations. It uses Jensen Alpha (α), a measure of excess returns that a stock generates compared to the overall market, calculated using the capital asset pricing model (CAPM). This fund selects the top 30 stocks from the Nifty 200 Index with the highest alpha values, offering investors a chance to potentially achieve superior returns.

This fund can be suited for investors with a higher risk appetite and a long-term investment horizon. By investing in the Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund, policyholders can grow their wealth while securing the protection of a life cover.

Tarun Chugh, Managing Director and CEO of Bajaj Allianz Life Insurance, stated, “As life goals enablers for India, it’s our commitment to provide customers with reliable tools to achieve their long-term financial goals. With our resilient economy and the strong historical performance of the Indian equity market, the Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund offers an opportunity for our customers to achieve their financial objectives.”

He further added that the historical performance of the Nifty 200 Alpha 30 Index shows that a balanced allocation between large-cap and mid-cap stocks has consistently outperformed other market-cap indices across various timeframes. By leveraging a passive and diversified investment approach, the fund aims to deliver growth potential while minimising risks. These features make the fund a compelling option for investors looking to review their fund allocations within their ULIPs and get closer to their financial goals.

The Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund seeks to replicate the performance of its benchmark index, subject to tracking error. The index will be reconstituted quarterly in March, June, September, and December, ensuring the fund remains aligned with market dynamics.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.