PNB MetLife India Insurance Company has launched the Momentum Quality Index Fund, a passively managed fund available under its Smart GEM and SIPP Pro unit-linked insurance plans (ULIPs).
The fund tracks the customised BSE 500 Momentum Quality 50 Index and combines momentum and quality factors to determine its investment exposure.
The fund’s strategy uses momentum, which seeks to capture prevailing market trends, and quality, which focuses on the financial fundamentals of businesses.
The index is customised for PNB MetLife by BSE Index Services to meet the insurer’s investment requirements under applicable Insurance Regulatory and Development Authority of India (IRDAI) norms, according to the company.
The new fund offer (NFO) for Smart GEM opened on October 19 and will close on October 29.
The NFO under SIPP Pro will remain open until November 4. Both offers have an initial net asset value (NAV) of ₹10 per unit.
Units under Smart GEM are scheduled to be allotted on October 30, while units under SIPP Pro are scheduled to be allotted on November 5, according to the insurer.
How does the fund work?
The fund follows a rules-based, multi-factor investment strategy rather than relying solely on company size to determine exposure. Momentum aims to capture trends in stock prices, while the quality factor focuses on the financial characteristics of businesses.
PNB MetLife said the combination is intended to provide exposure to companies selected using both factors. However, the strategy does not eliminate equity-market risk, and its performance will depend on the underlying index and market conditions.
As a passively managed fund, its objective is to track the specified benchmark rather than independently select investments to outperform it.
What should policyholders know?
The fund is available through ULIPs, which combine market-linked investments with life insurance cover. It is therefore different from a standalone mutual fund index scheme.
The insurer has highlighted the fund’s potential use for long-term financial goals, including retirement planning. However, returns are not guaranteed, and the investment risk is borne by the policyholder.
The ULIP products also carry a five-year lock-in period. Policyholders cannot fully or partially withdraw or surrender their investments during the first five years of the contract, according to the company’s disclosures.
Sourabh Lohtia, chief marketing officer at PNB MetLife, said the launch gives customers another option to pursue long-term financial goals alongside life insurance protection.
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Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.