Tata AIA Life Insurance Launches NFO Offerings

• New funds Sustainable Equity Fund & Dynamic Advantage Fund provide unique and distinct investment benefits along with the protection of life insurance cover
• NFO with Unit Linked Products window open from March 18 – 31 2023, at NAV of Rs. 10 per unit

MUMBAI, India, March 23, 2023 /PRNewswire/ — Tata AIA Life Insurance (Tata AIA) has launched, NFOs under the aegis of #ProtectYourFuture.

• Sustainable Equity Fund &
• Dynamic Advantage Fund

at NAV of Rs. 10 per unit.

Tata AIA’s Sustainability Equity Fund seeks to generate capital appreciation in the long term by investing in companies that adopt sustainable or Environmental, Social and Governance (ESG) friendly practices. The fund will invest 80-100% in equity and equity related instruments following ESG criteria and upto 20% in other equities or debt or money market instruments. Demonstrating the fund’s core philosophy, Tata AIA will plant a sapling that will be geo-tagged and provide a digital certificate of the same to every policy holder, investing in this fund.

Tata AIA’s Dynamic Advantage Fund aims to generate superior and steady returns, despite factors like market volatility. The fund will dynamically allocate the investment corpus between Equity and Debt depending upon market conditions.  

Investments in the two NFOs can be made through Tata AIA’s ULIP offerings like Fortune Pro, Wealth Pro, Fortune Maxima and Wealth Maxima. Consumers can also avail this opportunity by purchasing Tata AIA’s unique investment linked protection solutions, Param Rakshak and Sampoorna Raksha Supreme. Consumers can thus benefit from market linked returns, while securing their loved ones with the protection of a life insurance cover.

Harshad Patil, Executive Vice President and Chief Investment Officer (CIO), Tata AIA Life Insurance, said, “Protecting our future is crucial in these times of volatility and economic uncertainty. At the same time, we are witnessing significant climatic changes, clearly revealing the negative impact of rapid urbanization and development on our planet. Keeping this in mind, we have come up with two unique NFOs that will enable investors to tide through these challenges while contributing to a better future of our planet.”

Speaking about the Sustainable Equity Fund, he said “Today, consumers are keen to ensure their financial security, while contributing to a greener environment. Investors millennial consumers are leaning towards environmentally responsible companies, be it from an investment perspective or choosing their products for consumption. Tata AIA’s Sustainable Equity Fund offers investors a unique opportunity to benefit from sustainable investment avenues to secure their financial future while helping create a better tomorrow for mankind. It may be noted that echoing these trends, the ESG 100 index in India has given better returns than the broader Nifty 50 or 100 index over 3 and 5 years duration.”

Sustainability is currently an important criterion for businesses when it comes to adopting sustainable or ESG friendly protocols. Apart from categories such as financial inclusion, Sustainable investing covers new age fields such as Electric Mobility, Robotics and Automation Information access etc. Many Infotech, Fintech and other firms are making rapid progress in these contemporary categories, offering exciting long term investment opportunities. From a consumer perspective, increasing social consciousness and environmental concerns are influencing their purchase decisions. According to Nielsen, 75% of Millennials are eco-conscious to the point of changing their buying habits to favor environmentally friendly products. 90% of Millennials are interested in pursuing sustainable investments. Thus, there exists great opportunity to create investments that allow individuals to truly embrace owning their financial futures and doing their bit for the environment.

The Tata group has been at the forefront of sustainability. In fact, it is ranked No.1 on sustainability across Asia in 2022 as per GlobeScan Sustainability Leaders Survey. **

When it comes to making consistent returns in the markets, it is important to remember that no asset class outperforms others at all times. Hence it is very important that one diversifies the investments and leaves the job of allocating funds amid market volatility to professional fund managers with business cycles getting shorter and markets reacting to various events, a dynamic asset allocation fund can help generate consistent returns across market cycles.

“The Dynamic Advantage Fund aims to provide investors returns despite volatile market conditions. It will do so by dynamically investing in a combination of equity and debt avenues. Investors can thus benefit from the growth potential of equity, while benefiting from the downside protection that debt funds investments offer. Investors no longer need to closely track the markets and rebalance their portfolio manually, a task nearly impossible given the sharp and regular market movements,” Harshad added.

Tata AIA has a well-defined research process and methodology and takes a long-term view based on fundamental research. It follows a robust investment philosophy of portfolio construction through bottom-up stock selection by focusing on companies with sustainable earnings growth. Further, the investment team has been quite stable and has stayed with the company for long, ensuring a consistent investment approach. This has generated consistent risk-adjusted investment returns to meet investors’ long-term objectives and return expectations.

The below table showcases the performance of existing equity funds of Tata AIA since inception in comparison to the benchmark returns.

*Data as on 30 November,2022. # Morningstar ratings as of 31^st October 2022 on an overall basis

**Inception dates: Whole Life Midcap Equity Fund: 10 Jan 2007, Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 5 Oct 2015

In addition to the impressive track record of its existing funds, Tata AIA’s ULIP funds have been rated very highly by fund trackers. 99% of the rated AUM of Tata AIA is rated either 4 star or 5 star on a 5-year basis as of March 31st, 2022, by Morningstar Rating*. Tata AIA Life had a total Assets Under Management (AUM) of INR 69286 crore as of 28^th February 2023. 

* © 2020 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. In India and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Momingstar;(3) is not warranted to be complete, accurate or timely; (4) may be drawn from data published on various dates and procured from various sources and (4) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without imitation, Morningstar) nor any of their officers, directors, employees, associates or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.

About Tata AIA Life

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region.

About the Tata Group 

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.

Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture. In 2021-22, the revenue of Tata companies, taken together, was $128 billion (INR 9.6 trillion). These companies collectively employ over 935,000 people.

Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly listed Tata enterprises with a combined market capitalisation of $311 billion (INR 23.6 trillion) as on March 31, 2022. Tata companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Indian Hotels, Tata Communications, Tata Digital, and Tata Electronics.

About AIA

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR (3), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR (4), and a 49 per cent joint venture in India.

The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$302 billion as of 30 June 2022.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia, AIA serves the holders of more than 40 million individual policies and over 17 million participating members of group insurance schemes.

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).

** https://www.tatasustainability.com/pdfs/NewsArticle/Sustainability%20Round-up%20-%20April%20-%20June%2022.pdf 

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