The new fund follows a passive investment strategy, meaning stock selection will mirror the benchmark index instead of relying on active fund management. According to the insurer, 70% to 100% of assets will remain invested in equities, while up to 30% may be parked in cash and money market instruments for liquidity management.
Dividend earnings from underlying stocks will be reinvested into the fund rather than paid out, a structure aimed at long-term retirement corpus building through compounding.
The New Fund Offer (NFO) opened on May 20 and will remain available for subscription until May 27, 2026, with units priced at a base NAV of Rs 10 during the launch period.
The pension fund is available under Tata AIA’s market-linked pension products, including Smart Pension Secure and Premier Pension Secure, which combine investment exposure with life insurance cover.
