Bajaj Allianz Life launches Nifty Alpha 50 Index Fund for ULIP customers; details here

2 days ago 4

Bajaj Allianz Life introduced the Bajaj Allianz Life Nifty Alpha 50 Index Fund, which volition beryllium accessible to customers who presently ain oregon program to acquisition unit-linked security products (ULIPs). For those unfamiliar, this is simply a market-linked scale money designed to replicate the show of the Nifty Alpha 50 index. This scale comprises 50 large-cap stocks known for precocious alpha (potential for excess returns) and debased volatility.

Investors tin leverage this caller money to pat into the maturation imaginable of high-alpha stocks, diversify their portfolios, and summation from an index-based concern strategy, each portion securing a beingness cover. This money operates connected a passive absorption strategy wherever the money manager aims to reflector the Nifty Alpha 50 scale by investing successful its constituent 50 stocks successful proportionality to their respective weights wrong the index. The net plus worth (NAV) of the money passim the New Fund Offer (NFO) play (July 01-15, 2024) stands astatine ₹10.

Commenting connected the launch, Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance, said, “India’s economical maturation communicative continues to beryllium robust, presenting galore opportunities for investors. As investors question to capitalize connected this maturation journey, they recognize the value of diversifying their portfolios crossed antithetic marketplace headdress segments. The Bajaj Allianz Life Nifty Alpha 50 Index Fund is designed to seizure precocious alpha returns by investing successful top-performing stocks crossed marketplace segments. A humanities survey of the past 4 years suggests that the Nifty Alpha 50 Index has been mid-cap and small-cap oriented, arsenic astir of the alpha has travel from companies successful these segments. Over the mean to agelong term, the Nifty Alpha 50 Index has generated importantly amended returns compared to the broader market.”

The Nifty Alpha 50 scale focuses connected companies that grounds precocious alpha scores. It identifies the apical 50 large-cap stocks with the highest Jensen Alpha implicit the erstwhile year, targeting those poised for imaginable excess returns. For those unfamiliar, the Jensen Alpha (α) quantifies a stock's show comparative to what the superior plus pricing exemplary (CAPM) anticipates based connected its beta (volatility). A affirmative alpha signifies the banal has surpassed expectations, whereas a antagonistic alpha indicates it has fallen short. Therefore, the Nifty Alpha 50 utilises Jensen Alpha arsenic a methodology to place high-performing stocks and conception an scale that monitors their combined performance.

The Nifty Alpha 50 index has consistently outperformed broader marketplace indices implicit the mean to agelong term. It exclusively targets the apical 50 companies based connected their alpha values. The Bajaj Allianz Life Nifty Alpha 50 Index Fund provides important advantages by investing successful a diversified portfolio of stocks spanning assorted sectors.

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