Bajaj Life Insurance has introduced a new fund offer (NFO) called the Bajaj Life BSE 500 Enhanced Value 50 Pension Index Fund.
The NFO is open for subscription until November 16 and will be available only under the Bajaj Life Smart Pension Plan (ULIP).
The fund’s goal is to help investors build a market-linked retirement corpus through a value-based investment approach.
It identifies fundamentally strong but undervalued companies using parameters like book-to-price, earnings-to-price, and sales-to-price ratios. The fund will invest across large-cap, mid-cap, and small-cap stocks.
The portfolio will be rebalanced quarterly, and it tracks a flexi-cap index that has delivered 36.3% returns over 5 years and 24.6% over 7 years.
Growing Trend of Index-Linked Pension Funds
Experts note that the launch of such index-linked pension funds is part of a growing trend in the insurance industry. Companies are expanding their unit-linked products (ULIPs) to give investors more transparent and rule-based investment options.
According to Srinivas Rao Ravuri, Chief Investment Officer at Bajaj Life Insurance, the new fund aims to bring the disciplined principles of value investing into retirement planning.
It provides investors with a structured path to participate in India’s long-term equity market growth.