Max Life launches first-of-its-kind Midcap Momentum Index Fund in ULIP segment

Max Life Insurance has introduced the Midcap Momentum Index Fund, a first-of-its kind in the unit linked insurance plan (ULIP) segment. The new fund offering (NFO) is structured around the Nifty Midcap 150 Momentum 50 Index. Investors can participate in the new fund until January 29, 2024, at a unit price of Rs 10, Max Life Insurance said.

This NFO aligns with the surging trend of index funds in India which have witnessed 175 percent CAGR growth in asset under management (AUM) over the last three years (FY20-FY23), it said.

Specifically targeting the growth potential of mid-cap companies, the Midcap Momentum Fund aims to replicate the Nifty Midcap 150 Momentum 50 Index by investing in companies with similar weights as in the index and generate returns as closely as possible, subject to tracking error.

Apart from unlocking strategic investments in mid-cap space, Max Life’s Midcap Momentum Index Fund, will also enable investors to diversify their investment portfolios with a proven track record of good returns, capitalise on stock market momentum and steer clear of fund manager bias while also enjoying the added advantage of life cover, the insurer said.