Bajaj Life Insurance Introduces BSE 500 Quality 50 Index Fund in ULIP Plans

Bajaj Life Insurance has launched a new unit-linked fund option named the Bajaj Life BSE 500 Quality 50 Index Fund. The fund has been introduced through a New Fund Offer (NFO) that opened on February 1, 2026, and will remain available for subscription until February 15, 2026. 

The fund has been added as part of the insurer’s unit-linked insurance plan (ULIP) structure. 

ULIP Plans Linked to the Fund 

The new index fund is available under three ULIP products, Bajaj Life Smart Wealth Goal, Bajaj Life Supreme, and Bajaj Life Gain. These plans allow policyholders to split premiums between life insurance coverage and market-linked investment funds. 

Policyholders investing during the NFO period can choose to allocate a portion of their ULIP premiums to this index fund. 

Index Followed by the Fund 

The fund tracks the BSE 500 Quality 50 Index, which is drawn from the broader BSE 500 universe. The index consists of 50 companies selected using financial quality-based parameters. 

These parameters include return on equity, accruals ratio, and financial leverage, which are used to assess profitability, earnings quality, and balance sheet strength. 

Construction and Weighting Method 

The index follows a predefined, rules-based methodology. Stock selection and weights are determined using a mix of float-adjusted market capitalisation and quality scores assigned to each company. 

To manage concentration risk, the index applies limits at both the individual stock level and the sector level. 

Review and Rebalancing Process 

The index is scheduled to be rebalanced on a quarterly basis. During each review, updated financial data is used to reassess constituents and adjust weights where required. 

This process is intended to ensure that the index continues to reflect companies that meet the stated quality criteria. 

Product Positioning Within ULIPs 

According to the insurer, the fund has been introduced to widen the range of equity-linked investment choices available within its ULIP platform. It joins the existing set of market-linked funds offered under the company’s unit-linked products. 

Read More: Upcoming NFO: SBI Mutual Fund Launches SBI Quality Fund! 

Conclusion 

The Bajaj Life BSE 500 Quality 50 Index Fund provides ULIP policyholders with access to an index-based equity option focused on financial quality metrics. The NFO for the fund is open until 15 February 2026, after which it will be available for allocation within eligible ULIP plans. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.