Mumbai: Tata AIA Life Insurance has announced the launch of the Tata AIA Life Enhanced Value Index Fund, introducing a value-focused equity investment option designed to help investors build long-term wealth while securing life protection through unit-linked insurance solutions.
As India’s economy continues to grow and household savings shift toward market-linked instruments, index-based investing is increasingly emerging as a preferred strategy for long-term financial security.
The newly launched Tata AIA Life Enhanced Value Index Fund’s aim to combine disciplined equity investing with insurance protection to support investors’ financial planning goals.
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Tata AIA Life Enhanced Value Index Fund: Value-Driven Investing for Long-Term Wealth Creation
The Tata AIA Life Enhanced Value Index Fund provides value-based exposure to 50 companies across large-cap, mid-cap, and small-cap segments selected through a transparent index methodology.
The Tata AIA Life enhanced value index fund is designed to support financial goals such as child education planning, asset creation, and long-term wealth building while offering life insurance protection through Tata AIA Life’s unit-linked life insurance solutions.
Alongside this offering, the insurer has also introduced the Tata AIA Life Enhanced Value Index Pension Fund, available exclusively through unit-linked pension plans, aimed at helping policyholders build a retirement corpus while maintaining life cover.
The New Fund Offer (NFO) period runs from February 9 to February 16, 2026, with policies issued at a NAV of ₹10 on February 16, 2026.
Tata AIA Life Enhanced Value Index Fund Details
- Investment Objective: Long-term capital appreciation by investing in stocks aligned with the Enhanced Value Index
- Benchmark: BSE 500 Enhanced Value 50 Customised Index
- Asset Allocation:
- 70%–100% equity and equity-related instruments
- 0%–30% cash and money market instruments
The fund tracks an index of 50 companies selected using key financial parameters such as book-to-price, earnings-to-price, and sales-to-price ratios. The benchmark index is associated with Bombay Stock Exchange.
Commenting on the launch, Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance, said: “Equity markets reward patience and discipline over time. Many investors struggle with stock selection or market timing.
Our Enhanced Value Index strategy simplifies this by offering a systematic, fundamentals-driven approach. These new funds aim to make long-term equity investing more transparent, accessible, and straightforward for everyone.”
Tata AIA Life Enhanced Value Index Fund: Market Context Support Index-Based Investing
Several macroeconomic and investment trends are supporting the adoption of passive and value-based strategies:
- Economic growth tailwinds: India’s GDP outlook, demographic advantage, and expanding middle class continue to support corporate earnings growth, according to International Monetary Fund and Reserve Bank of India.
- Volatile global environment: Geopolitical tensions and shifting capital flows are contributing to market volatility, making value-based strategies relevant.
- Rising passive investing adoption: Passive funds in India have grown at over 25% CAGR in the past five years, according to Association of Mutual Funds in India.
- Built-in diversification: The Enhanced Value Index covers companies across sectors to spread risk while maintaining market participation.
Strategy Highlights
The Enhanced Value Index strategy focuses on combining diversification with valuation discipline. Key features include:
- Diversified exposure across large-, mid-, and small-cap companies
- Systematic, rules-based investment approach
- Long-term capital appreciation potential
- Reduced volatility through valuation-focused selection
- Integrated life insurance protection through ULIP solutions
- Retirement planning support via the pension fund variant
Availability Across Tata AIA Solutions
The fund is available through multiple Tata AIA unit-linked life insurance offerings, including Param Raksha Life series plans, Smart SIP solutions, Wealth plans, Fortune plans, and health-linked ULIP products.
The Enhanced Value Index Pension Fund is available through Tata AIA Smart Pension Secure Plan and Tata AIA Premier Pension Secure, enabling retirement-focused investing with long-term equity growth potential.
As of December 31, 2025, Tata AIA Life Insurance reported Assets Under Management (AUM) of ₹145,256 crore, reflecting 21% year-on-year growth, driven by strong individual new business premium income and investment performance.
