Max Life Insurance Introduces Midcap Momentum Index Fund in ULIP Market

17 Jan 2024 , 08:26 AM

The Midcap Momentum Index Fund, a first for the unit linked insurance plan (ULIP) market, has been launched by Max Life Insurance. Re-organised around the Nifty Midcap 150 Momentum 50 Index is the new fund offering (NFO). At a unit cost of Rs 10, investors can join in the new fund till January 29, 2024, according to Max Life Insurance.

This NFO, according to the statement, is in line with the rising trend of Indian index funds, which have had an asset under management (AUM) rise of 175% CAGR over the last three years (FY20–FY23).

The Midcap Momentum Fund seeks to mimic the Nifty Midcap 150 Momentum 50 Index by investing in firms that have similar weights to the index and generating returns as nearly as feasible, subject to tracking error. It specifically targets the growth potential of mid-cap companies.

The insurer claimed that in addition to opening up strategic investments in the mid-cap space, Max Life’s Midcap Momentum Index Fund will help investors diversify their portfolios with a track record of strong returns, take advantage of stock market momentum, avoid fund manager bias, and benefit from life insurance.

‘This fund, with its distinctive momentum strategy, aligns with the expectations of modern consumers and aims to harness the heightened growth potential within India’s mid-cap companies,’ stated Sachin Bajaj, Head of Investments at Max Life.

Contributing to the fund’s distinctive approach, the momentum strategy of the fund focuses on choosing winning companies—that is, stocks that have outperformed the market or stocks basket in the recent past and are anticipated to continue on this winning streak in the near future.

The fund is accessible with the Max Life Online Savings Plan during the launch period at no administrative or allocation costs. Additionally, it is provided with capital guarantee solutions and Max Life Fast Track Super, which give OSP as the product linked to the market.

In the near future, the fund will also be accessible with top Max Life products like the Max Life Platinum Wealth Plan, Max Life Flexi Wealth Plan, Max Life Flexi Wealth Advantage Plan, and Max Life Smart Flexi Protect Solution.

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