Tata AIA Launches Enhanced Value Index Funds

•      New fund offers value-based equity exposure across large, mid, and small-cap companies.
•        It combines with life cover when accessed through Tata AIA’s unit-linked pension plans.

Mumbai : As India's economy sustains its fast pace, investors are seeking ways to build long-term wealth through disciplined strategies. With domestic equity participation at record highs and household savings steadily shifting from traditional assets to market linked instruments, index-based investing has emerged as a preferred route for building long term financial security.

Recognizing the shift towards, Tata AIA Life Insurance (Tata AIA), one of India’s leading life insurers, has launched two new funds that focus on value investing. This strategy focuses on identifying companies, whose current value does not reflect their growth potential. By tracking a proven index of 50, large, mid, and small-cap companies selected using key financial parameters, these funds aim to help investors take part in the growth story of potential future leaders, while also offering the security of life insurance.

Tata AIA Life Enhanced Value Index Fund:
This fund provides value-based exposure to 50 companies selected through a transparent index method. It is suitable for wealth creation goals such as child education planning, asset building, and long-term financial security, while also offering life insurance protection through Tata AIA Life’s unit linked life insurance solutions.

Tata AIA Life Enhanced Value Index Pension Fund:
Exclusively available through Tata AIA Life’s unit linked pension solutions, this fund is ideal for consumers planning for a worry-free retirement. It combines long term equity growth potential with life insurance cover, enabling policyholders to systematically build a retirement corpus while safeguarding their family’s financial future.

The New Fund Offer period will run from 9 to 16 February 2026 and the policies will be issued at the NAV of ₹10 on 16 February 2026.

Key details of the fund

●        Investment objective: Long-term capital appreciation by investing in stocks aligned to the Enhanced Value Index

●        Benchmark: BSE 500 Enhanced Value 50 Customised Index

●        Asset allocation: 70%–100% equity and equity-related instruments; 0%–30% cash and money market instruments

Commenting on the launch, Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance, said, “Equity markets reward patience and discipline over time. Many investors struggle with stock selection or market timing. Our Enhanced Value Index strategy simplifies this by offering a systematic, fundamentals-driven approach. These new funds aim to make long-term equity investing more transparent, accessible, and straightforward for everyone.”

Why Now is the Ideal Time for Index-Based Investing

·         Economic Growth Tailwinds: India’s GDP growth outlook, demographic advantage, and expanding middle class continue to create opportunities for corporate earnings growth (IMF, RBI)¹.

·         Volatile Global Environment: Geopolitical tensions and shifting global capital flows create market volatility. Value-based strategies help identify undervalued companies, that can benefit from these market conditions.

·         Rising Preference for Passive Investing: With over 25% CAGR growth in passive funds in India over the past five years (AMFI)², investors increasingly prefer transparency and cost efficiency in their investments.

·         Built-In Diversification: The Enhanced Value Index tracks a wide range of companies across sectors, helping to spread risk while capturing market participation.

Why the Enhanced Value Index strategy stands out

Unlike narrow thematic or sector specific funds, the Enhanced Value Index approach offers broad market exposure while maintaining a focus on valuation discipline. By investing in companies with strong fundamentals and reasonable prices, the strategy seeks to balance growth potential with relative downside protection across market cycles. The key features include:

·         Diversified Exposure: The fund tracks the BSE Enhanced Value Index, covering 50 large, and mid-cap and small-cap space based on three fundamental measures- book value to price, earnings to price and sales to price.

• Systematic, Rules-Based Investing: A disciplined, fundamentals-driven approach minimizes emotional decision-making and market timing errors.
• Long-Term Capital Appreciation: Aimed at delivering steady growth over long investment horizons.
• Reduced Volatility: Focuses on companies trading at reasonable valuations, balancing growth potential with downside protection.
• Life Insurance Protection: High life cover through Tata AIA’s unit-linked life insurance solutions.
• Retirement Focus: The pension fund variant is tailor-made for long-term retirement planning.

Invest with Confidence

Tata AIA’s Enhanced Value Index Fund offers a straightforward, transparent investment approach that taps into India’s long-term equity growth story. It is a strategic solution for those looking to create wealth through systematic, disciplined investing, without the complexity of stock selection or market timing.

Investment in Enhanced Value Index Fund:

Customer can invest in the fund and be part of long-term Wealth Creation and financial planning. The Fund is available with the following TATA AIA Solutions: Tata AIA Param Raksha Life Advantage +, Tata AIA Param Raksha Life Growth +, Tata AIA Param Raksha Life Pro +, Tata AIA Param Raksha Life Maxima +, Tata AIA Param Raksha Life Pro, Tata AIA Param Raksha Life Pro Advance, Tata AIA Shubh Muhurat, Tata AIA Premier SIP, Tata AIA Shubh Fortune, Tata AIA Shubh Health Plus, Tata AIA Smart Sampoorna Raksha, Tata AIA Smart SIP,  Tata AIA Smart Sampoorna Raksha Pro, Tata AIA Smart Sampoorna Raksha Supreme, Tata AIA iSystematic Insurance Plan, Tata AIA Smart Fortune Plus, Tata AIA Param Raksha Life, Tata AIA Param Raksha Plus 2.0, Tata AIA Smart Sampoorna Raksha Plus, Tata AIA Health Pro, Tata AIA Pro-Fit, Tata AIA Fortune Maxima, Tata AIA Fortune Pro, Tata AIA Wealth Maxima,Tata AIA Wealth Pro.

Investment in Enhanced Value Index Pension Fund:

Equity funds have the potential to generate higher returns in the long term that can help pension policyholders plan for their long-term liabilities and improve their purchasing power. This fund is exclusively available with Tata AIA's unit-linked pension solution, Tata AIA Smart Pension Secure Plan and Tata AIA Premier Pension Secure which enables consumers to build a robust retirement fund in a smart way with long-term growth potential.

As of 31 December 2025, Tata AIA Life Insurance’s Assets Under Management stood at ₹ 145,256 crore, reflecting a 21% year-on-year growth. This has been due to robust Individual New Business Premium income and exceptional investment performance.