Bajaj Allianz unveils Nifty 500 Multi-cap Momentum Quality 50 index fund NFO for ULIP customers | Stock Market News

Bajaj Allianz on Tuesday, February 4, announced the launch of an index-based fund – Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund – for its ULIP customers.

The private life insurer said along with a life cover, the new fund offer (NFO), which is launched today, will allow ULIP customers to take the benefit of investing in multi-cap stocks, with momentum and quality factors. Additionally, Bajaj Allianz mentioned that the NFO not only provides growth opportunities but also offers diversification and the advantages of an index-based investment strategy.

Investors have till February 14 to apply for this NFO.

Stock Selection Methodology

The fund aims to replicate the performance of the benchmark index Nifty 500 Multicap Momentum Quality 50 Index, subject to tracking error. The index is rebalanced and reconstituted on a semi-annual basis in June and December.

The index fund focuses on stocks selected based on a combination of momentum and quality factors from the Nifty 500 index. The Momentum score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility while the Quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio), and earnings (EPS) growth variability analysed during the previous 5 years.

The fund is suitable for investors with a high-risk appetite and a long-term investment horizon.

Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Allianz Life Insurance, on the launch of the NFO said, “As one of the life goal enablers for India, we are committed to providing customers with means to achieve their long-term financial goals. The Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund allows ULIP customers to tap into India’s growth story through a diversified portfolio of high momentum.”

“With a multi-cap approach and historical dynamic allocation among large-cap, Mid-cap & Small-cap, the fund identifies opportunities across market segments. Designed for investors with a higher risk appetite, it offers a path to long-term capital appreciation while navigating market fluctuations. These features make it a compelling choice for customers looking to review their fund allocation and move closer to their long-term financial goals,” Ravuri added.

Bajaj Allianz Life ULIP products, with underlying Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund enables policyholders to achieve their life goals, powered by the opportunity for wealth creation with a dynamic allocation strategy, the company said in a release.

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