Tata AIA launches Multicap Opportunities Fund with market-linked growth and life cover

Tata AIA Life Insurance Co. Ltd. has announced the launch of the Tata AIA Multicap Opportunities Fund and the Tata AIA Multicap Opportunities Pension Fund, expanding its suite of equity-oriented investment options for long-term investors seeking diversification along with life insurance protection.

The launch comes at a time when market volatility, global uncertainties and sharp sectoral rotations are prompting investors to look beyond concentrated bets. Multicap strategies, which invest across large, mid and small-cap stocks, are increasingly being seen as a way to balance stability with growth potential while reducing dependence on any single segment of the market.

Both newly launched funds are anchored to the Nifty 500 Index, offering exposure across more than 500 companies that together represent over 90% of India’s free-float market capitalisation. The funds will be available at an initial Net Asset Value (NAV) of ₹10 per unit during the New Fund Offer (NFO) period, which runs from December 24 to December 31, 2025.

Investors can access these funds through Tata AIA’s Unit Linked Insurance Plans (ULIPs), allowing them to combine market-linked returns with life cover as part of a long-term financial plan. The equity allocation of the funds will range between 60% and 100%, while up to 40% can be invested in debt and money market instruments to help manage risk across market cycles.

“The Multicap Opportunities Fund is designed to help investors participate in India’s increasingly broad-based growth across sectors and company sizes,” said Harshad Patil, Chief Investment Officer, Tata AIA Life Insurance. “A multicap approach reduces over-reliance on any single market segment and provides a disciplined way to build long-term wealth. By offering this through ULIPs, we are also enabling customers to combine investment growth with life cover.”

The funds aim to blend large-cap stability with the higher growth potential of mid- and small-cap stocks, making them suitable for long-term investors who can tolerate higher risk. Tax benefits may also be available to investors, subject to prevailing tax laws.

The Tata AIA Multicap Opportunities Fund will be available across several ULIP offerings, including the Param Raksha Life series, Smart SIP, Fortune Pro, Wealth Pro, Smart Sampoorna Raksha Plus, Shubh Fortune and Tata AIA Pro Fit. The Multicap Opportunities Pension Fund will be offered under Tata AIA Smart Pension Secure and Tata AIA Premier Pension Secure, targeting retirement-focused investors.

Tata AIA highlighted its strong investment track record, noting that over 95% of its rated assets under management are rated 4 or 5 stars by Morningstar as of November 2025. The company’s total AUM stood at ₹1.42 lakh crore as of November 30, 2025, reflecting a year-on-year growth of 20.85%.

While the insurer underscored the long-term potential of the multicap strategy, it also cautioned investors to assess their risk appetite carefully, as the funds carry a high-risk profile and past performance may not be indicative of future returns.