Tata AIA Life Insurance launches Small Cap Discovery Fund
Policyholders to benefit from long-term capital appreciation through small cap stocks
City Air News
Jul 10, 2023 08:31
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Mumbai, July 10, 2023: 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. The New Fund will offer policyholders the opportunity to generate capital appreciation in the long-term by investing in small-cap market capitalisation stocks. The New Fund Offering (NFO) window will remain open from July 10 to July 24, 2023 at Rs. 10 per unit, applicable only during the NFO period.
Commenting on the launch of the Small-Cap Discovery Fund, Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA Life Insurance, said, “The Government is focused on formalising the economy during the Amrit Kaal, which will benefit small businesses immensely. Further, growth in consumption demand, rising disposable income, and support for manufacturing will catalyse several smaller companies to become dominant in their sectors. 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.”
Small-cap stocks are a significant part of the Indian equity market, with more than 4500 companies. Among these, approximately 500 stocks have a market cap higher than Rs.2000 crore. That is why, compared to the large-cap and mid-cap categories, the small-cap category presents a large universe of stocks for investment. However, many of them are also prone to a high degree of volatility as their performance can be impacted by changing market dynamics. Therefore, one needs to have a longer investment horizon to enjoy the returns from this fund.
