Tata AIA Life Insurance has launched its first dedicated Small-Cap fund, Tata AIA Small Cap Discovery Fund, offering policyholders long-term capital appreciation through investing in small-cap market capitalisation stocks. The NFO window is open from July10 to July24, 2023, at Rs. 10 per unit.
Small cap stocks offer investors several advantages, including lower prices, excellent returns over 1 year (14.3%), 3 years (41%), and since inception (13.6%), and beating benchmarks like Tata AIA funds. The Nifty Small Cap 100 trades at a deeper discount than Nifty 50, and inflation is cooling, making small caps more accessible at cheaper rates. The RBI rate hike cycle has paused, making them a favorable investment option.
Mr.Harshad Patil, Executive Vice President and Chief Investment Officer (CIO) of Tata AIA Life Insurance, said, “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.”Tata AIA’s research process and methodology focus on long-term fundamentals, resulting in a 30% increase in total Asset Under Management (AUM) to INR 75,192 Cr as of May 31, 2023.
