Bajaj Allianz Life Nifty Alpha 50 Index Fund NFO Launched for ULIP customers

Chandigarh: Bajaj Allianz Life, one of India’s leading private life insurers, has launched the Bajaj Allianz Life Nifty Alpha 50 Index Fund that will be available for customer who have and will purchase ULIP products. This new fund presents a unique opportunity for investors to capitalize on the growth potential of high-alpha stocks, diversify their portfolios, and enjoy the benefits of an index-based investment approach, along with a life cover. The NFO period for Bajaj Allianz Life Nifty Alpha 50 Index Fund starts on 1st, July and ends on 15th July, 2024.

Nifty Alpha 50 Index considers Jensen Alpha while calculating excess returns for the stock. Jensen Alpha (α) refers to excess return generated by a stock/investment over and above the expected return by using capital asset pricing model. The fund aims to provide capital appreciation by investing in equities that are part of the Nifty Alpha 50 Index, which includes the 50 stocks with the highest alpha from the top 300 stocks by free-float market capitalization.

Commenting on the launch, Sampath Reddy, Chief Investment Officer at Bajaj Allianz Life Insurance, said, “India's economic growth story continues to be robust, presenting numerous opportunities for investors. As investors seek to capitalize on this growth journey, they realize the importance of diversifying their portfolios across different market cap segments. The Bajaj Allianz Life Nifty Alpha 50 Index Fund is designed to capture high alpha returns by investing in top-performing stocks across market segments. A historical study of the past four years suggests that the Nifty Alpha 50 Index has been mid-cap and small-cap oriented, as most of the alpha has come from companies in these segments. Over the medium to long term, the Nifty Alpha 50 Index has generated significantly better returns compared to the broader market.”