A ULIP-linked multifactor index fund launched with 50-stock strategy

Tata AIA Life Insurance has announced the launch of the Tata AIA Multifactor Index Fund, a new unit-linked insurance plan (ULIP)-linked equity fund aimed at providing market participation through a rules-based investment strategy that incorporates multiple factors.

The company said the fund is designed for investors seeking exposure to equity markets alongside life insurance protection, particularly in a market environment characterised by volatility and shifting macroeconomic conditions.

The fund follows a multifactor index approach based on the Nifty 500 universe and selects 50 stocks using four parameters — low volatility, quality, value and momentum. According to the company, the strategy places additional emphasis on low-volatility stocks with the aim of reducing the impact of sharp market fluctuations over time.

The benchmark for the fund is the Nifty 500 Multifactor MQVLv 50 Index (customised), in line with regulatory requirements for ULIP-linked funds. It will maintain an equity allocation of 80%–100%, while up to 20% may be allocated to cash and money market instruments for liquidity management.

The investment approach is passive and rules-based, with stock selection and rebalancing determined through a quantitative framework rather than discretionary fund management. The portfolio will consist of 50 companies drawn from the broader Nifty 500 universe.

The New Fund Offer (NFO) is open from 23 June to 30 June 2026, with units to be issued at a net asset value (NAV) of ₹10 on 30 June 2026.

The fund will be available across multiple ULIP products offered by the company, covering protection, savings and wealth-oriented plans.

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