The fund tracks the Nifty 500 Low Volatility 50 Index, which comprises 50 stocks selected from the broader Nifty 500 universe based on relatively lower price volatility. The strategy aims to provide equity exposure with comparatively stable return patterns over time.
According to the insurer, the fund has a predominantly large-cap orientation, with around 79% allocation to large-cap stocks, while the rest is spread across mid- and small-cap segments. This structure is intended to balance diversification with a relatively defensive investment approach.
The index follows a rules-based methodology, selecting stocks based on low volatility scores derived from the inverse of the standard deviation of one-year trailing returns. It is rebalanced twice a year, in June and December, to reflect changing market conditions. Individual stock weights are capped to limit concentration risk.
The offering targets long-term investors seeking systematic equity exposure within an insurance-linked product, with an emphasis on relatively lower volatility compared to broader market indices.
Bajaj Life Insurance operates in India’s private life insurance sector and offers a range of protection and investment-linked products.
