Tata AIA Launches Innovative Value Index Funds

Tata AIA Life Insurance has unveiled two new market-linked, value-oriented index funds that integrate investment with life insurance coverage. Designed to offer investors long-term capital growth alongside insurance protection, the funds introduce a fresh investment option in India’s rapidly expanding unit-linked market.

The newly launched funds are named Tata AIA Life Enhanced Value Index Fund and Tata AIA Life Enhanced Value Index Pension Fund. Both funds track the BSE 500 Enhanced Value 50 Customised Index, which comprises fifty large-cap, mid-cap, and small-cap companies carefully selected for their relative undervaluation while retaining strong growth potential.

The funds’ investment structures have been crafted with a long-term growth perspective. Between 70% and 100% of the portfolio will be allocated to equities and equity-related instruments, while up to 30% may be held in cash or money market instruments. This approach ensures sufficient liquidity for investors while optimising potential returns.

The New Fund Offer (NFO) period will run from 9–16 February 2026, with an initial unit price set at $0.11 (₹10). Investors may subscribe to the funds during this window.

According to Tata AIA, these funds are suitable for investors seeking value-based equity exposure while simultaneously reducing risks associated with life and pension planning. Financial experts note that as India’s markets continue to mature, hybrid products such as these are increasingly attractive to both retail and high-net-worth investors.

With the current exchange rate at $1 = ₹90.73, these funds provide an accessible avenue for investors to participate in the Indian equity market from the comfort of their homes. They offer a straightforward entry point for both domestic and international investors aiming to benefit from India’s growth potential while enjoying insurance protection.