The TATA AIA Life Momentum 50 Index Fund is an investment option that offers investors access to a momentum-based index strategy for wealth creation. It is India's first fund to directly track the BSE 500 Momentum 50 Index, blending the benefits of ULIP insurance with a quantitative, rule-based equity investment strategy aimed at capitalizing on prevailing stock market trends. The TATA AIA Life Momentum 50 Index NFO is launching on 11th August and will continue till 24th August.
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Plans starting from₹1000/month
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
TATA AIA Life Momentum 50 Index Fund invests in the top 50 stocks across the BSE 500 universe based on their recent 12-month returns, adjusted for volatility. The BSE 500 Momentum 50 Index selects these stocks using a systematic momentum scoring method, ensuring exposure to companies demonstrating the strongest upward price trends while maintaining sector and market cap diversification. Through TATA AIA's ULIP structure, investors not only participate in equity market performance, but also receive life insurance coverage making this solution both an investment plan and a protection tool.
Highlights of TATA AIA Life Momentum 50 Index Fund
Particulars
Details
Benchmark Index
BSE 500 Momentum 50 Index
Benchmark Index Returns
10-Year Returns: 22.9% p.a.
Risk Profile
High
NFO Launch Date
11th August 2025
NFO Duration
11th to 24th August 2025
Current NAV
₹10
Minimum Investment
₹2000
What is BSE 500 Momentum 50 Index?
The BSE 500 Momentum 50 Index tracks the performance of the top 50 momentum-driven stocks within the BSE 500 universe. Stocks are selected using a quantitative model based on their past 12-month price return, adjusted for volatility, ensuring they are not just high-risk, high-return outliers. Only highly liquid stocks are considered.
Constituents are weighted by the product of their float-adjusted market capitalization and momentum score, with each stock capped at 4% to prevent excessive concentration. The index is rebalanced quarterly-in March, June, September, and December to ensure it consistently reflects the highest-momentum companies.
It serves as a robust benchmark for momentum-focused index funds and ETFs, offering investors systematic exposure to stocks with strong upward trends across market capitalizations and sectors.
Reasons Why You Should Consider Investing in TATA AIA Life Momentum 50 Index Fund
Superior Historical Returns: Over the past decade, the BSE 500 Momentum 50 Index has delivered strong long-term returns, with a 5-year return of 36.2% and a 10-year return of 22.9% (as per data in the presentation).
Adapts to Market Trends: The strategy quickly reacts to changing market leadership by promoting winners and demoting laggards every quarter, so investors are always exposed to the highest-performing segments.
Diversification Across Market Caps and Sectors: The index includes large, mid, and small-cap stocks from various sectors, offering true flexi-cap exposure and reducing risk from over-concentration.
Bias-Free, Rule-Based Approach: The fund replicates an index declared by BSE, minimizing the impact of fund manager bias and ensuring disciplined stock selection.
Transparent and Systematic: Rules for stock selection and rebalancing are clearly defined, ensuring consistent and replicable performance over time.
Life Insurance Benefits: As a ULIP, it combines market-based wealth creation with life cover, providing added financial security.
Attractive Features for Investors: ULIP features like maturity boosters, loyalty additions, and the option for systematic withdrawals enhance long-term value.
BSE 500 Momentum 50 With Other Indices
Index Name
5-Year Return
10-Year Return
BSE 500 Momentum 50
36.2%
22.9%
BSE 500
22.9%
14.0%
BSE 100
20.0%
13.1%
BSE 50
18.9%
12.9%
BSE Midcap 150
29.9%
17.4%
BSE Smallcap 250
32.1%
15.2%
Sector Representation of BSE 500 Momentum 50
Sector
Allocation (%)
Financial Services
36.6%
Healthcare
17.1%
Commodities
13.1%
Information Technology
8.2%
Consumer Discretionary
7.5%
Industrials
7.2%
Telecommunication
5.3%
Fast Moving Consumer Goods (FMCG)
3.1%
Services
1.7%
Diversified
0.4%
Companies of BSE 500 Momentum 50
How to Buy TATA AIA Life Momentum 50 Index Fund from Policybazaar?
To buy the TATA AIA Life Momentum 50 Index Fund from Policybazaar, follow these steps:
Step 1: Fill in your name and contact number in the form on this page to get started.
Note: Your details are kept confidential and will only be used to customize your benefits.
Step 2: You can also visit the plans just by clicking View Plans below
Step 3: Once logged in, you'll be prompted to fill in your city, age, and annual income in the provided form. This information will be used to check the personalised benefits of the plans.
Step 4: After providing your personal information, you'll be presented with Tata AIA Investment Plans on a blue and red card. Select the TATA AIA Life Momentum 50 Index Fund option that best suits your needs from the following options:
Step 5: In the TATA AIA Life Momentum 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 6: Review plan details carefully. Once satisfied, click the "Proceed" button and follow the prompts on the screen to move forward with the purchase.
Step 7: 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 8: Provide your required KYC (Know Your Customer) details. This step is essential for regulatory compliance.
Step 9: Complete the payment process. Upon successful payment, you will receive confirmation of your purchase.
What are the Benefits of Purchasing the TATA AIA Life Momentum 50 Index Fund From Policybazaar?
Investing via Policybazaar provides various advantages, including:
Ease of Access: Invest digitally in the TATA AIA Life Momentum 50 Index Fund without the hassle of visiting banks or agents.
Plan Comparison: Evaluate various investment options, including the latest funds, to make well-informed choices and secure competitive deals.
Professional Support: Benefit from expert advice to choose the NFO plan that aligns with your financial goals and requirements.
Tax Savings: Enjoy tax benefits under Section 80C and Section 10(10D) of the Income Tax Act by investing through Policybazaar.
FAQs
Who should invest in the TATA AIA Life Momentum 50 Index Fund?
Investors seeking long-term equity returns, looking to capitalize on momentum investing, and wanting the added benefit of life insurance cover.
What has been the performance of the BSE 500 Momentum 50 Index?
Rs.100 invested 10 years ago in the index would have grown to Rs.786, outperforming other major indices during the same period.
What makes this fund unique?
It is India's first ULIP to be linked to a momentum-based index, combining the advantages of life insurance and a contemporary, data-driven investment strategy.
What are the tax benefits under the TATA AIA Life Momentum 50 Index Fund?
You can avail of the following tax benefits of investing in the TATA AIA Life Momentum 50 Index Fund:
Section 80C: You can claim tax benefits under Section 80C of the Income Tax Act, 1961. It allows a deduction of up to ₹1.5 lakhs from taxable income for the invested amount in TATA AIA.
Section 10(10D): You can utilize Section 10(10D) benefits for your investments in TATA AIA New Fund Offering (NFO). This benefit is applicable if the annual premium paid is below ₹ 2.5 lakh.
˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in *Past 10 Year annualised returns as on 01-09-2025 *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.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under 10(10D))
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