The fund is designed to track the BSE 500 Dividend Leaders 50 Index and will invest in 50 companies identified for their consistent dividend distribution history. According to the company, the portfolio will follow a passive investment strategy in line with IRDAI-linked guidelines, without active stock selection by a fund manager.
The fund allocates 70%–100% of assets to equities, while up to 30% may be held in cash and money market instruments to manage liquidity needs. Dividend income generated from underlying stocks will be reinvested within the fund, rather than being distributed, with the objective of supporting long-term compounding for retirement accumulation.
The New Fund Offer (NFO) is open for subscription from May 20 to May 27, 2026. Units during the NFO period are priced at a base Net Asset Value (NAV) of ₹10.
The pension fund is available under Tata AIA’s unit-linked pension products, including Smart Pension Secure and Premier Pension Secure. These products also include life insurance coverage alongside market-linked investment exposure.
The company said the structure is intended to offer exposure to financially stable, dividend-paying businesses while maintaining a rule-based investment approach aligned to retirement planning needs.
The fund carries market-linked risks, and returns will depend on underlying equity performance. The insurer has also stated that unit-linked insurance products do not guarantee returns and are subject to market fluctuations and product-specific terms, including a five-year lock-in period.
The launch comes amid continued interest in index-based and passive investment strategies within India’s insurance-linked retirement product segment.
