Tata AIA Life Insurance has launched its first Small-Cap fund, Tata AIA Small Cap Discovery Fund, offering policyholders long-term capital appreciation through investing in small-cap market capitalization stocks. The fund is open from July 10 to July 24, 2023, with an NFO window of Rs. 10 per unit.
Tata AIA Small Cap Discovery Fund invests in handpicked small-cap companies, offering long-term wealth creation opportunities and potential growth into mid- and large-cap companies. Tata AIA policyholders can invest in the fund through various ULIP offerings and Param Rakshak Solutions, benefiting from long-term equity growth and life insurance protection.
Small-cap stocks offer investors several advantages, including lower prices, excellent returns over 1 year (14.3%), 3 years (41%), and since inception (13.6%). Tata AIA funds have beaten their benchmarks over multiple time periods, with returns over 5 years showing significant growth. The RBI rate hike cycle has paused, and inflation is cooling, making small-cap funds more accessible at cheaper rates. The availability of these funds at lower prices is favorable for investors.
