Tata AIA Life Insurance has launched two new fund offers (NFOs) targeting India's growing consumer market, recognising the economic boost driven by recent tax reforms and increasing disposable incomes.
The Tata AIA Life Tax Bonanza Consumption Fund and the Tata AIA Life Tax Bonanza Consumption Pension Fund aim to capitalise on these changes by enabling investors to benefit from India's shifting consumption patterns. Both NFOs will be available from 24th to 31st March 2025, with units priced at Rs 10 each, offering an opportunity to invest in the country's evolving market landscape.
India's consumption landscape is undergoing significant transformation, driven by urbanisation and rising incomes. With zero tax liability on income up to Rs 12.75 lakh under the new tax regime effective FY26, consumers are expected to have more spending power, fuelling demand across sectors such as FMCG, retail, e-commerce, and automobiles. Tata AIA's new funds are designed to provide investors with exposure to these sectors, offering both growth potential and financial security.
Key details
A) The Tata AIA Life Tax Bonanza Consumption Fund provides consumers with the opportunity to benefit from the rising consumption trends while also securing the financial future of their loved ones. This specially curated fund offers the dual advantage of wealth creation and financial security, making it a smart investment choice for individuals looking to secure their financial well-being.
B) The Tata AIA Life Tax Bonanza Consumption Pension Fund, available exclusively through Tata AIA's unit-linked pension solution, is ideal for individuals seeking to grow their savings post-retirement. This fund is designed to offer long-term growth, helping individuals build a strong retirement fund that can offer financial stability and peace of mind in the years to come.
Asset allocation
These funds have a primary objective of achieving long-term capital growth by investing in a well-diversified portfolio of companies that are expected to benefit from the increasing consumption trends in India.
The strategic diversification of Tata AIA's funds includes investments in large-cap, mid-cap, and small-cap companies, balancing stability with growth potential. By tapping into sectors poised for expansion, these funds are positioned to thrive in India’s dynamic consumer economy. The approach is business cycle agnostic, making these funds resilient through market fluctuations, with the potential for long-term wealth creation and tax-optimised investments.
Investment Focus: Companies positioned to capitalize on India's domestic consumption expansion. Asset Allocation: Allocation of 60%-100% in equity and equity-related instruments, and 0%-40% in cash & money market securities Risk Profile: Designed for long-term capital appreciation with a strategic risk management approach. Life Insurance Protection: In addition to wealth creation, investors can also protect their families' financial future with life cover.
Key sectors FMCG: Companies driving growth through essential and discretionary consumer products. Retail & E-commerce: Benefiting from the rapid growth of online shopping and digital transactions. Automobiles & Premium Goods: With rising disposable incomes, consumers are inclined towards premium products.
Harshad Patil, Chief Investment Officer at Tata AIA, highlighted the strategic positioning of these funds: “India’s consumption patterns are evolving rapidly, driven by urbanisation, rising incomes, and a shift towards premium products and services. The Tata AIA Life Tax Bonanza Consumption Fund & Tata AIA Life Tax Bonanza Consumption Pension Fund are designed to help young and middle-aged investors to benefit from this dynamic growth, offering an opportunity to grow wealth while also enjoying the tax advantages the fund offers.”
Beyond wealth creation, the funds offer life insurance protection, securing families' financial futures alongside investment growth. The Tata AIA Life Tax Bonanza Consumption Fund and the Consumption Pension Fund are available through various Tata AIA solutions, including Tata AIA Shubh Muhurat and Tata AIA Premier SIP, among others. These funds are expected to play a key role in leveraging India's consumption-driven success story, providing robust investment options for diverse consumer segments.
Other Tata AIA Funds
Tata AIA’s funds have consistently produced impressive, sustained returns, making them a top choice for investors looking for growth, stability, and security. Supported by skilled fund management and a focused investment approach, Tata AIA funds have effectively maneuvered through market fluctuations while optimizing wealth generation for policyholders.
This history of strong performance highlights Tata AIA’s dedication to providing investment options that match India’s changing economic environment, enabling investors to seize new opportunities with assurance.
Last 5 Years Returns* (CAGR) Tata AIA Funds Fund Return (%) * Benchmark Return (%) *
Multi Cap Fund 23.87% 15.98%
Top 200 Fund 24.31% 15.98%
India Consumption Fund 22.47% 15.98%
*Data as of February 28, 2025. Past performance is not indicative of future performance.
Fund Benchmark: Multi Cap Fund, India Consumption Fund, Top 200 Fund: S&P BSE 200.
Inception Dates: Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 05 Oct 2015, India Consumption Fund: 05 Oct 2015.