Max Life Insurance Nifty Alpha 50 Index Fund

The Max Life Insurance Nifty Alpha 50 Index Fund is a newly launched NFO that starts on May 16 and ends on May 31, 2024. It mirrors the Nifty Alpha 50 index by investing in the same 50 stocks and mirroring their weightage within the index. The index is well-diversified and investible, selecting securities based on criteria like liquidity and market capitalization.

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What is the Max Life Insurance Nifty Alpha 50 Index Fund?

The Max Life Insurance Nifty Alpha 50 Index Fund is a newly launched New Fund Offering (NFO) provided by Max Life Insurance starting on May 16 and ends on May 31, 2024. It focuses on replicating the Nifty Alpha 50 index by investing in the same 50 stocks and mimicking their weightage within the index. It is Max Life Insurance’s first Nifty Alpha 50 Index Fund. It tracks a benchmark index, the Nifty Alpha 50 Index. It is a True Flexi Cap Index that automatically increases allocation in midcap and small-cap during bull runs and allocation in Large caps during bear runs.

Nifty Alpha 50 Index aims to measure the performance of securities listed on the NSE with high alphas. It is a well-diversified 50-stock index. In order to make the 50 stock index investable and replicable, criteria such as liquidity and market capitalization are applied while selecting securities.

The fund follows an alpha investing strategy, investing in stocks which are performing better than the market and exiting as soon as the returns become lower. The weight of each stock in the fund reflects its weight in the index. The stock with the highest alpha in the index will have the biggest allocation in the fund.

Highlights of Max Life Insurance Nifty Alpha 50 Index Fund

Aspect Details
Investment Objective It aims to measure the performance of securities listed on NSE with high alphas. It is a well-diversified 50-stock index.
Benchmark Index NIFTY ALPHA 50 Index
Risk Profile Moderate Risk
NFO Period 16th-31st May 
Current NAV ₹10
Minimum Investment ₹2,000/month (Capital Guarantee Plans)

Reasons Why You Should Invest in Max Life Insurance Nifty Alpha 50 Index Fund

Here are 4 reasons why considering the Nifty Alpha 50 Index Fund can be a smart move:

  • Proven Track Record: The NIFTY ALPHA 50 Index has a track record that speaks for itself. As the industry's first Nifty Alpha 50 Index Fund, it boasts an impressive 10-year benchmark return of 26.3%. This consistent performance level indicates stability and reliability, making it an attractive option.

  • Investment Strategy: One of the key strengths of the NIFTY ALPHA 50 Index is its investment strategy. The fund is designed to generate returns that surpass the market or benchmark indices. It achieves this by strategically investing in stocks that outperform the market and promptly exiting positions when returns diminish. 

  • Customised Investment Plans: Investing in the NIFTY ALPHA 50 Index through products like the Max Life Insurance Nifty Alpha 50 Index Fund offers investors tailored investment plans that suit their needs. These plans, such as the Online Savings Plan, Capital Guarantee Solution, and Flexi Wealth Advantage Plan- Whole Life, available through Policybazaar, provide flexibility and convenience. What's more, investors can take advantage of this opportunity with zero charges, starting with commitments as low as ₹2000 per month.

  • Exclusive Offer for Policybazaar: For investors looking for a unique opportunity, the Max Life Insurance Nifty Alpha 50 Index Fund is extending an exclusive Pre-NFO offer through Policybazaar. This offer allows investors to enter the market at the Net Asset Value (NAV) of ₹10, providing early access to a fund with a proven track record and a strategy geared towards long-term growth.

How does the Nifty Alpha 50 Index Fund Work?

Nifty Alpha 50 Index Fund aims to mirror the performance of the Nifty Alpha 50 index. Here's how it works:

  • Replicate the Nifty Alpha 50 index by investing in the same 50 stocks and mimicking their weightage within the index.

  • The fund manager buys and sells stocks based on the composition of the Nifty Alpha 50 index.

  • The weight of each stock in the fund reflects its weight in the index. The stock with the highest alpha in the index will have the biggest allocation in the fund.

  • As the Nifty Alpha 50 index rebalances periodically (usually semi-annually), the fund manager adjusts the fund's holdings to align with the updated index.

Investment Plans Child Plan Retirement Plan
Online Savings Plan
Starts at Rs 2,000
Online Savings Plan - WOP
Starts at Rs 2,000
Flexi Wealth Advantage Plan- Whole Life
Starts at Rs 2,000
Available
Starts at Rs 2,000
Available
Starts at Rs 2,000
Available
Starts at Rs 2,000

Sector Representation of the Nifty Alpha 50 Index Fund

Sector Representation Weight 
Financial Services 29%
Capital Goods 17%
Power 7%
Healthcare 7%
Realty 7%
Consumer Services  6%
Information Technology  6%
Construction  5%
Consumer Durables 5%
Metals & Mining  4%
Automobile 4%

[Source: nseindia.com]

Performance of NIFTY Alpha 50 Index Fund

Index Name  3-Years Returns 5-Years Returns 10-Years Returns
NIFTY Alpha 50 34.80% 31.20% 26.30%
NIFTY 50 15.60% 14.00% 12.90%
NIFTY Midcap 150  27.40% 24.60% 20.90%
NIFTY Smallcap 250 29.60% 24.30% 18.80%
NIFTY Smallcap 250 Quality 50 29.50% 26.60% 21.70%

[Source: nseindia.com]

About Max Life Insurance Company

Max Life Insurance Company Limited (formerly known as Max New York Life Insurance Company Limited) is an Indian life insurance company headquartered in New Delhi and India's largest non-bank private-sector life insurer. It is an 80:20 joint venture between Max Financial Services and Axis Bank.

  • Max Life Insurance achieved significant progress across various business parameters in the Financial Year 2022-23.

  • The company has reinforced its position by prioritizing the development of a successful life insurance business.

  • The core values of long-term savings and protection have been central to Max Life Insurance's strategic focus.

  • Assets under management witnessed a substantial 14% increase, reaching Rs. 122,857 crores.

How to Buy Max Life Insurance Nifty Alpha 50 Index Fund from Policybazaar?

To buy the Max Life Insurance Nifty Alpha 50 Index Fund from Policybazaar, follow these steps:

Step 1: Fill in your name and contact number in the form after clicking View Plans given below.

Note: Your details are kept confidential and will only be used to customize your benefits.

Step 2: Once logged in, you'll be prompted to fill in your city, age, and contact numbers in the provided form. This information will be used to check the personalised benefits of the plans.

Step 3: After providing your personal information, you'll be presented with Max Life Plans on a blue card. Select the Max Life Insurance Nifty Alpha 50 Index Fund option that best suits your needs from the following options:

  • Max Life Capital Guarantee Solution

  • Max Life Online Savings Plan

  • Max Life Flexi Wealth Advantage Plan- Whole Life

Step 4: In the Max Life Insurance Nifty Alpha 50 Index Fund, click the "Get Details" tab for more information.

You can also get FREE expert consultation; just click on the talk to an expert button. 

Step 5: Review the details of the plan carefully. Once satisfied, click on the "Proceed" button and follow the prompts on the screen to move forward with the purchase.

Step 6: You will be prompted to enter essential details and specify the amount you want to invest. Select the preferred mode of payment for your investment.

Step 7: Provide your required KYC (Know Your Customer) details. This step is essential for regulatory compliance.

Step 8: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.

What are the Benefits of Purchasing the Max Life Insurance Nifty Alpha 50 Index Fund from Policybazaar?

Investing through Policybazaar offers a range of valuable benefits:

  • Convenience: With Policybazaar, you can invest in the Max Life Insurance Nifty Alpha 50 Index Fund online, eliminating the need for physical visits to banks or insurance agents.

  • Comparison: Policybazaar provides a platform to compare various plans, including new funds. This ensures that you have all the necessary information to make an informed decision and secure the best deal available in the market.

  • Expert Guidance: Policybazaar boasts a team of financial experts who are ready to assist you in selecting the most suitable NFO plan based on your specific requirements and financial goals. 

  • Tax Advantages: Investing in the Max Life Insurance Nifty Alpha 50 Index Fund through Policybazaar can lead to tax benefits under Section 80C and 10(10D). The platform helps you understand and navigate the potential tax advantages associated with your investment, optimizing your financial planning.

  • Easy Redemption: When redeeming your NFO investment, Policybazaar provides a seamless process, subject to the terms and conditions specified in the NFO agreement.

Frequently Asked Questions

  • Under which plan can we avail the benefits of Max Life Insurance Nifty Alpha 50 Index Fund?

    Max Life Insurance Nifty Alpha 50 Index Fund is offered in the following plans:
  • Is it good to invest in Max Life Insurance Nifty Alpha 50 Index Fund?

    If you are looking for a fund with the potential to generate high returns over the long term and you have a moderate to high-risk appetite, then Max Life Insurance Nifty Alpha 50 Index Fund can be a good option for you.
  • Who should invest in Max Life Insurance Nifty Alpha 50 Index Fund?

    Max Life Insurance Nifty Alpha 50 Index Fund is suitable for investors who:
    • Investors with a long-term horizon. Alpha strategies can be volatile, so time in the market matters.

  • How does the Max Life Insurance Nifty Alpha 50 Index Fund benchmark its performance? 

    The Nifty Alpha 50 Index Fund uses the NIFTY ALPHA 50 Index, one of the leading indices representing the performance of the Indian equity market.
  • What are the tax implications under the Max Life Insurance Nifty Alpha 50 Index Fund?

    Investors can avail of tax advantages under Section 80C of the Income Tax Act, 1961, which allows a deduction of up to ₹1.5 lakhs from their taxable income for the sum invested in the fund. The Section 10(10D) benefits can also be utilised by the policyholder if the yearly premium paid is below Rs. 2.5 lakh.
  • What other mutual funds are included under the Nifty Alpha 50 Index?

    Other funds included are: 
    • Kotak Nifty Alpha 50 ETF

    • Bandhan Nifty Alpha 50 ETF

  • What is Kotak Nifty Alpha 50 ETF?

    An open-ended exchange-traded fund (ETF) that replicates the Nifty Alpha 50 Index. It invests in the same 50 large-cap stocks as the index, with weightages based on their alpha scores.
  • What is Bandhan Nifty Alpha 50 ETF?

    Like Kotak Nifty Alpha 50 ETF, it's an exchange-traded fund that tracks the Nifty Alpha 50 Index. It invests in the same 50 large-cap stocks, with weightages reflecting their alpha scores.
  • How is Bandhan Nifty Alpha 5P0 ETF different from Kotak Nifty Alpha 50 ETF?

    The key difference lies in the expense ratio. Each ETF charges a fee, and the expense ratio for Bandhan Nifty Alpha 50 ETF might differ from Kotak's offering.
  • How does the Kotak Nifty Alpha 50 ETF compare to a regular Kotak Nifty 50 ETF?

    • Focus: The Kotak Nifty Alpha 50 ETF targets high-alpha stocks, potentially offering higher returns but with more risk. It tracks the Nifty 50 index, offering broader market exposure with lower volatility.

    • Expense ratio: The expense ratio for the Alpha 50 ETF might be slightly higher due to the additional effort involved in selecting and weighting alpha stocks.

  • Does Bandhan Nifty Alpha 50 ETF offer any dividend reinvestment options?

    Similar to Kotak Nifty Alpha 50 ETF, Bandhan's ETF might not directly pay dividends. However, some brokers might offer DRIP (Dividend Reinvestment Plan) options, where the dividends from the underlying stocks get automatically reinvested into additional ETF units.

*Past 5 Year annualised returns as on 01-05-2024
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

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