Bajaj Allianz Life Insurance Launches Nifty 500 Multicap Momentum Quality 50 Index Fund

Bajaj Allianz Life Insurance has introduced the Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund, an index-based fund available under its Unit Linked Insurance Plans (ULIPs). The New Fund Offer (NFO) is open until February 14, 2025.

Benchmark and Stock Selection Criteria

The fund tracks the Nifty 500 Multicap Momentum Quality 50 Index, which selects stocks based on momentum and quality factors from the Nifty 500 index. The momentum factor is determined by a stock’s six-month and 12-month price return, adjusted for volatility. 

The quality factor considers financial indicators such as return on equity (ROE), debt-to-equity ratio, and earnings growth variability over the past five years.

Portfolio Across Market Segments

The fund offers exposure to a mix of large-cap, mid-cap, and small-cap stocks that meet the selection criteria. The idea is to maintain a balanced portfolio that combines high-momentum stocks with good financial fundamentals.

The index is rebalanced and reconstituted semi-annually in June and December to reflect changing market conditions and make sure that the selected stocks meet the fund’s criteria.

ULIP Integration

Since the fund is available through Bajaj Allianz Life’s ULIPs, policyholders investing in ULIP plans can opt for this fund as part of their allocation. ULIPs combine life insurance with investment options, allowing policyholders to invest in different funds based on their preferences.

NFO Details and Considerations

The NFO opened on February 4, 2025, and will remain open until February 14, 2025. Investors looking to participate in an index-based ULIP fund with a focus on momentum and quality-based stock selection can consider this offering. However, as with any market-linked investment, returns are subject to market risks, and investors should evaluate their risk appetite before investing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.