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 offers policyholders long-term capital appreciation through investing in small-cap market capitalization stocks. The NFO window is open from July10 to July24, 2023, at Rs. 10 per unit.
Small-cap stocks make up over 4500 Indian companies, with 500 having market caps above Rs. 2000 crore. These stocks offer a diverse range of investment opportunities, but are also susceptible to high volatility due to market dynamics. To fully enjoy returns from these funds, investors need a longer investment horizon.
Nifty Small Cap 100 trades at a deeper discount on 2-year average PE** than Nifty 50, offering better returns over 1 year (14.3%), 3 years (41%), and since inception (13.6%). 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 maximize their investment by spotting such opportunities early and investing in them over the medium to long term.”
