NFO Alert: Bajaj Life Insurance Introduces Nifty 500 Low Volatility 50 Index Fund via ULIPs

Bajaj Life Insurance has launched a new fund under its unit-linked insurance plans (ULIPs). The New Fund Offer (NFO) opens on April 16, 2026, and will close on April 30, 2026.  

The fund is available to policyholders opting for market-linked insurance products. 

Benchmark and Structure 

The fund tracks the Nifty 500 Low Volatility 50 Index, which includes 50 stocks selected from the broader Nifty 500 based on lower price fluctuations. The selection follows a predefined method using 1-year return volatility as a key measure. 

The index is rebalanced twice a year, in June and December. Stock weights are capped at 5% or 5 times their free-float market capitalisation weight at the time of inclusion, whichever is lower. 

Portfolio Mix 

The fund has a majority allocation to large-cap stocks, accounting for about 79% of the portfolio. The remaining exposure is spread across mid- and small-cap stocks.  

This allocation results in a diversified equity portfolio with a tilt towards relatively stable companies. 

Investment Framework 

The fund follows a passive approach, mirroring the composition of the underlying index. It does not involve discretionary stock selection.  

The structure is for offering equity exposure with relatively lower volatility than the broader market. 

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Conclusion 

The offering introduces a low-volatility index-based fund within ULIPs, with a defined allocation across market capitalisations and a rules-based stock selection process. 

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.