Bajaj Life Insurance Unveils New Pension Index Fund Tracking BSE 500 Enhanced Value 50

Bajaj Life Insurance has introduced a new fund offer (NFO) called the Bajaj Life BSE 500 Enhanced Value 50 Pension Index Fund. The NFO is open for subscription till November 16, 2025 and will be available only under the company’s Bajaj Life Smart Pension Plan (ULIP). The fund is to help investors build a retirement corpus linked to market performance.

Fund Structure and Objective

The pension fund aims to replicate the performance of the BSE 500 Enhanced Value 50 Index, which includes 50 companies selected from the broader BSE 500 universe. It follows a value-based investment approach by identifying stocks that are fundamentally sound but undervalued. The selection is based on Book-to-Price, Earnings-to-Price, and Sales-to-Price ratios.

Investment Coverage

The fund invests across large-cap, mid-cap, and small-cap stocks, allowing for a spread across different market segments. Its portfolio will be rebalanced every quarter to stay aligned with the benchmark index and account for market changes. This approach will help maintain consistency between the fund’s performance and that of the index it tracks.

Industry Context

The introduction of index-linked pension funds has become more common among insurers. These products cater to investors seeking rule-based and transparent investment options within retirement plans. The focus on passive strategies reflects a broader industry shift towards systematic investment models.

About the BSE 500 Enhanced Value 50 Index

The BSE 500 Enhanced Value 50 Index was launched by the BSE in 2021. It measures the performance of value stocks across different capitalisation levels within the Indian market. The index is increasingly being used by fund managers for factor-based investment strategies.

Read More: Bajaj Finserv Renames Insurance Divisions as Bajaj General Insurance and Bajaj Life Insurance!

Conclusion

The new Bajaj Life pension fund adds to the growing number of market-linked retirement options available in India, offering exposure to a diversified index of value-based companies through a structured investment plan.

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.