#BajajAllianzLife #ULIP #IndexFund #ValueInvesting #BSE500 #EnhancedValue50 #NewFundOffer #EquityInvestment #LifeInsurance #WealthCreation #FinancialPlanning #MutualFunds #StockMarketIndia
Mumbai: Bajaj Allianz Life Insurance, one of India’s leading private insurers, has announced the launch of its latest investment option for Unit Linked Insurance Plan (ULIP) policyholders – the BSE 500 Enhanced Value 50 Index Fund. The New Fund Offer (NFO) is currently open and will remain available to investors until September 20, 2025.
The fund seeks to provide long-term capital appreciation by passively tracking the BSE 500 Enhanced Value 50 Index, which is built on the principles of value investing. This index comprises 50 carefully selected stocks from the BSE 500 universe, chosen on the basis of value-oriented financial parameters.
A Structured Approach to Value Investing
The BSE 500 Enhanced Value 50 Index is designed to offer investors exposure to companies with attractive valuations and solid fundamentals. It applies three core financial ratios in its stock selection process:
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Book-to-Price Ratio – Identifies companies trading at attractive valuations relative to their book value.
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Earnings-to-Price Ratio – Focuses on firms with strong earnings generation compared to their stock prices.
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Sales-to-Price Ratio – Highlights companies with robust revenue bases relative to their market valuations.
By combining multiple valuation measures, the index minimizes the risks associated with relying on a single metric. The selected basket of 50 stocks is reviewed and rebalanced every quarter, ensuring that the portfolio reflects updated financial data and evolving market conditions.
Passive Fund Management – Lower Risk, Greater Transparency
Unlike actively managed funds, which depend on fund managers’ discretion and can carry higher risks, the Bajaj Allianz Life BSE 500 Enhanced Value 50 Index Fund will be managed passively. This means the fund will mirror the performance of the index without attempting to outperform it through frequent stock-picking.
Such a structure not only ensures greater transparency but also helps in reducing management risk. It also offers investors a disciplined and rule-based investment avenue while eliminating biases that may arise in active management.
Who Should Invest?
According to Bajaj Allianz Life, this fund is primarily designed for investors who:
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Have a high-risk appetite.
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Are seeking long-term capital growth.
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Want systematic exposure to equities through a rule-based framework.
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Prefer combining investment opportunities with life insurance cover under ULIPs.
ULIPs offer the dual benefit of wealth creation and insurance protection, making them a popular choice among retail investors who wish to secure both financial growth and life security in a single product.
Expert Opinion
Commenting on the launch, Srinivas Rao Ravuri, Chief Investment Officer at Bajaj Allianz Life, said:
“This fund provides a structured way to access value investing. Systematic investment in attractively valued companies across large, mid, and small-cap segments could help investors diversify their equity exposure and balance risk-reward outcomes.”
He also added that the BSE 500 Enhanced Value 50 Index has historically delivered returns higher than broader market-cap indices over medium to long time frames. However, investors should remain mindful that past performance is not a guarantee of future results.
Significance for Policyholders
This launch marks another step by Bajaj Allianz Life to expand its suite of ULIP-linked investment options. For policyholders, this fund provides:
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Diversification across market segments: Large-cap, mid-cap, and small-cap companies are all included.
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Exposure to value-based investing principles, which have historically generated strong risk-adjusted returns.
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Quarterly rebalancing, ensuring the portfolio adapts to changing market conditions.
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Integration with insurance benefits, giving investors both protection and growth.
The Bigger Picture: Value Investing Through ULIPs
Value investing has long been regarded as a time-tested strategy, focusing on buying fundamentally strong companies available at attractive valuations. In India’s rapidly evolving market, where growth-focused investments often dominate, Bajaj Allianz Life’s fund introduces a disciplined and systematic way for retail investors to tap into the value investing philosophy.
Moreover, the integration of such a fund within ULIPs offers investors a unique opportunity. ULIPs not only provide market-linked returns but also life cover and tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, subject to prevailing tax laws.
Key Details of the Fund
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Fund Type: Index Fund under ULIPs
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Benchmark: BSE 500 Enhanced Value 50 Index
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Number of Stocks: 50
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Methodology: Based on Book-to-Price, Earnings-to-Price, and Sales-to-Price ratios
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Rebalancing: Quarterly
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NFO Close Date: September 20, 2025
Conclusion
The launch of the BSE 500 Enhanced Value 50 Index Fund by Bajaj Allianz Life underscores the growing demand for passive, rule-based, and value-oriented investment options in the Indian market. For ULIP policyholders, it represents an opportunity to participate in India’s growth story through a disciplined equity exposure while simultaneously securing their financial future with life insurance coverage.
As Indian investors continue to diversify their portfolios across equity, debt, and alternative assets, such offerings are likely to gain popularity. With its focus on value investing, systematic rebalancing, and insurance integration, Bajaj Allianz Life’s new fund could be a valuable addition for long-term, high-risk investors.
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#BajajAllianzLife #ULIP #IndexFund #ValueInvesting #BSE500 #EnhancedValue50 #NewFundOffer #EquityInvestment #LifeInsurance #WealthCreation #FinancialPlanning #MutualFunds #StockMarketIndia #CapitalMarkets #NFO2025
