Bajaj Allianz Life Launches Industry First Small-Cap Fund in Its ULIPs Segment

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Bajaj Allianz Life  has launched India’s first Small-Cap fund in the ULIP segment that offers customers the opportunity to achieve capital appreciation by investing in a diversified portfolio of small-cap stocks. The benchmark index is Nifty Small Cap 100 index. The NFO period for Bajaj Allianz Life’s Small Cap Fund ends on 23 May, 2023.

The equity investment strategy of the Bajaj Allianz Life Investment team revolves around identifying companies with a competitive advantage, good corporate governance, high ROE/ROCE, robust free cash flow, growth visibility and attractive valuations. The underlying philosophy is to uncover businesses with large market opportunities and prioritize Growth at a Reasonable Price from a valuation perspective. Bajaj Allianz Life Small Cap Fund will invest minimum 60% in small cap stocks, Market-cap exposure is based on equity exposure re-scaled to 100% .

Why invest in Small-Cap Fund

Customers can consider some of the key points while investing in the Bajaj Allianz Life Small-Cap Fund:

  • Small-cap fund category has seen significant traction from investors in the other financial saving avenues, over the past few years
  • Small-cap equity funds have managed to outperform the benchmark Nifty Small Cap 100 index by a significant margin over the long term.
  • Nifty Small-cap 100 index valuation has moderated from its highs and is now below the long-term average, making a case for investment in small-caps from a valuation perspective.
Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance, said on the launch, “We are thrilled to launch the first-of-its-kind small cap fund in the life insurance industry, with the focus on long-term wealth creation for our customers. We are confident that this fund will strongly resonate with investors and support them in the journey towards achieving their life goals.”

Bajaj Allianz Life’s Small Cap Fund is now available with Bajaj Allianz Life’s ULIPs.