Tata AIA Life Insurance has unveiled two new value-oriented index funds, further expanding its suite of unit-linked investment products amid rising investor interest in market-linked instruments combined with life insurance coverage.
The newly launched funds—the Tata AIA Life Enhanced Value Index Fund and the Tata AIA Life Enhanced Value Index Pension Fund—track the BSE 500 Enhanced Value 50 Customised Index. This benchmark comprises 50 large-, mid-, and small-cap companies selected based on valuation-focused financial parameters, aiming to identify stocks trading below their intrinsic value while maintaining growth potential.
Designed for long-term capital appreciation, both funds provide exposure to equities while simultaneously offering life insurance protection when subscribed through Tata AIA’s unit-linked life and pension plans. The initiative aligns with growing investor appetite for products that blend insurance security with equity market participation.
The new fund offer (NFO) period runs from 9 February to 16 February 2026, with units priced at $0.11 (₹10) each as of 16 February. Investors seeking exposure to this product can subscribe during the designated window.
Investment allocations within the funds are structured to balance growth and liquidity. Between 70% and 100% of the portfolio will be directed to equities and equity-related instruments, while the remaining up to 30% will be held in cash and money market instruments. This structure aims to optimise returns while maintaining sufficient liquidity for investor redemptions.
Key Details of Tata AIA Value Index Funds
| Feature | Tata AIA Life Enhanced Value Index Fund | Tata AIA Life Enhanced Value Index Pension Fund |
|---|---|---|
| Benchmark Index | BSE 500 Enhanced Value 50 Customised Index | BSE 500 Enhanced Value 50 Customised Index |
| NFO Period | 9–16 February 2026 | 9–16 February 2026 |
| Unit Price | $0.11 (₹10) | $0.11 (₹10) |
| Equity Allocation | 70–100% | 70–100% |
| Cash & Money Market Allocation | Up to 30% | Up to 30% |
| Objective | Long-term capital appreciation with life cover | Long-term capital appreciation with life cover |
According to Tata AIA, these funds cater to investors seeking value-driven equity exposure while benefiting from the risk-mitigation features of life and pension plans. Analysts note that as India’s financial market matures, such hybrid offerings are increasingly attractive to retail and HNI investors looking to combine wealth creation with insurance protection.
With the rupee currently at $1 = ₹90.73, the funds are positioned as accessible entry points for both domestic and overseas investors aiming to participate in India’s equity markets.