Tata AIA Launches 2 New Funds Based on BSE India Sector Leaders Customised Index

Tata AIA Life Insurance has announced the introduction of 2 funds linked to the BSE India Sector Leaders Customised Index. These are the Tata AIA Sector Leaders Index Fund and the Tata AIA Sector Leaders Index Pension Fund. Both will be offered at an initial price of ₹10 per unit during the New Fund Offer (NFO) period, which will remain open until September 22, 2025.

Benchmark and Portfolio

The funds will track the BSE India Sector Leaders Customised Index, which includes up to 3 of the largest companies from each sector within the top 500 list. At present, the index covers 61 companies across 21 industries, giving wide exposure across different parts of the market.

Asset Allocation

According to the scheme structure, 80-100% of assets will be invested in equity and equity-related instruments. The remaining allocation, up to 20%, may be kept in cash and money market instruments.

Mode of Availability

The index fund will be offered through unit-linked insurance plans (ULIPs). The pension fund version will be available under ULIP-based retirement solutions. As per the updated tax framework, starting September 22, 2025, fund charges under these products will not be subject to GST.

Investment Objective

The 2 funds are aimed at providing equity exposure by investing in companies considered leaders in their respective sectors. The design of the index seeks to spread investments across industries, reducing concentration in any single sector.

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Reference Performance

As per news reports, for comparison, other equity-oriented funds of Tata AIA have reported annualised returns of 27-29% over the 5 years ending July 2025. During the same period, benchmark returns were close to 19%. These figures serve as historical reference and do not indicate future performance.

Conclusion

With these schemes, Tata AIA has added new index-linked options under its ULIP offerings. The focus is on sector leaders, with coverage across a broad range of industries.

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.