Laila Keith
The Tata AIA Flexi Growth Fund is an open-ended dynamic equity scheme that offers long-term capital appreciation by investing in a portfolio of stocks across market capitalisations. The fund offers flexibility to invest in carefully selected companies across large, mid or small capitalisation, with the aim of generating strong returns and safeguarding wealth. The fund is suitable for investors with a high-risk appetite and long-term investment horizons.
| Characteristics | Values |
|---|---|
| Investment Objective | Long-term wealth creation by investing in a portfolio of stocks, being dynamically overweight/underweight across market capitalization |
| Type of Fund | Open-ended New Fund Offering (NFO) |
| Type of Asset | Flexi cap fund |
| Investment Allocation | 70%-100% in Equity and Equity-related instruments |
| 0%-30% in Debt and Money Market Instruments | |
| 0%-30% in Bank Deposits and Mutual Funds | |
| Investment Options | Income Distribution cum Withdrawal Option (IDCW) |
| IDCW Payout | |
| IDCW Reinvestment | |
| IDCW Transfer | |
| Initial Investment | Minimum initial investment: Rs 5,000 |
| Investment Period | No lock-in period |
| Risk Management Strategy | Mitigating volatility by dynamically navigating across market capitalization |
| Target Audience | Investors with a high-risk appetite and long-term wealth creation objectives |
What You'll Learn
Understanding the fund's investment objective
The Tata AIA Flexi Growth Fund is an open-ended New Fund Offering (NFO) that aims for long-term capital appreciation by investing in a diverse range of stocks spanning various market capitalizations. The fund manager has the flexibility to invest in carefully selected companies across large, mid, or small market capitalizations. The fund's primary objective is to generate capital appreciation over the long term.
The Tata AIA Flexi Growth Fund is designed to provide investors with the ability to capture evolving market trends and enhance their diversification. The fund achieves this by investing 70%-100% in equity and equity-related instruments, with the remaining 0%-30% allocated to debt and money market instruments. This dynamic asset allocation strategy allows the fund to perform well across various market cycles and provides superior volatility management.
The Tata AIA Flexi Growth Fund is well-suited for investors with a long-term investment horizon who are comfortable with a high-risk, high-return profile. The fund offers the advantage of investing across different market capitalizations, providing exposure to a range of companies with different characteristics. This diversification helps to mitigate risk and maximize returns.
The fund also has a strong performance potential, with Tata AIA Funds delivering benchmark-beating returns. The fund's versatility, strategic sector allocation, and resilience across market cycles make it a compelling choice for investors seeking long-term wealth creation.
Overall, the Tata AIA Flexi Growth Fund offers a dynamic and flexible approach to investing, allowing investors to navigate market volatility and achieve their financial goals.
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How the fund differs from a multi-cap fund
The Tata AIA Flexi Growth Fund is an open-ended New Fund Offering (NFO) that offers long-term capital appreciation by investing in equity and equity-related instruments across different market capitalisations. It is a type of flexi-cap fund that provides the flexibility to invest in large, mid, or small-cap stocks simultaneously.
Now, how does this differ from a multi-cap fund?
A multi-cap fund, like the Tata AIA Multi-Cap Fund, also provides the flexibility to invest across large-cap, mid-cap, and small-cap companies, offering diversification across all market capitalisations. However, there is a key difference in the allocation constraints.
The Tata AIA Multi-Cap Fund has a mandatory restriction in terms of a minimum allocation that must be made to each of the market caps. In contrast, the Tata AIA Flexi Growth Fund offers unconstrained market cap allocation. This means that, at any given point, the fund can be dynamically overweight or underweight across large, mid, or small caps, depending on their relative valuation, investment opportunities, and an understanding of market sentiments, outlook, and cycles.
In summary, the Tata AIA Flexi Growth Fund provides greater flexibility in terms of market cap allocation, allowing the fund manager to adapt the investment strategy based on market conditions. This makes it an "all-weather" fund that can navigate different economic cycles and market volatility.
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Who the target audience is for this fund
The Tata AIA Flexi Growth Fund is suitable for investors with a high-risk appetite and a long-term wealth creation objective. As an all-weather fund, it is likely to be preferred by long-term investors. The fund offers the flexibility to invest in large, mid, or small-cap stocks, allowing investors to capture evolving market trends. The fund's dynamic nature and strategic sectoral allocation make it a good choice for those seeking to minimise risk and enhance diversification.
The Tata AIA Flexi Growth Fund is designed for investors who are comfortable with a high-risk, high-return fund and have a long-term investment horizon. This fund is well-suited for those seeking capital appreciation over the medium to long term.
The fund's performance is not guaranteed, and investors should be aware of the associated risks, including investment and liquidity risk. The fund is managed by Tata AIA Life Insurance Company Ltd., and the investment decisions are made by experienced fund managers.
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The fund's benefits
The Tata AIA Flexi Growth Fund is an open-ended New Fund Offering (NFO) that provides a range of benefits for investors.
Versatility in Investment:
The Tata AIA Flexi Growth Fund offers flexibility by allowing investors to allocate their money across Large/Mid/Small cap stocks simultaneously. This versatility ensures that investors can capture evolving market trends across different stock categories.
Strategic Sectoral Allocation:
The fund intelligently selects sectors for investment based on their outlook, ensuring a well-diversified portfolio. This strategic allocation minimizes risk and enhances overall returns.
Resilience Across Market Cycles:
The dynamic nature of asset allocation in the Tata AIA Flexi Growth Fund allows it to perform well across various market cycles. Investments across different market caps contribute to superior volatility management, providing stability.
Stellar Performance:
Tata funds have a strong track record, with the multi-cap fund achieving a remarkable 25.9% return over the last 5 years. This performance demonstrates the fund's ability to generate consistent and impressive returns.
Tailored to Your Needs:
The Tata AIA Flexi Growth Fund is accessible through various product categories, including Unit Linked Insurance Plans (ULIP), Capital Guarantee Solution Plans (CG), and Tata Smart Sampoorna Raksha (SSR). This flexibility ensures the fund aligns with your specific investment needs and preferences.
Long-Term Stability:
The fund encourages a long-term investment strategy, allowing investors to allocate their funds wisely and benefit from long-term stability. This approach helps navigate the unpredictable nature of the investment world.
High-Quality Diversified Portfolio:
The fund invests in carefully selected companies with strong growth potential across large, mid, or small market capitalizations. This diversification minimizes risk and enhances overall returns.
Strong Performance Potential:
The Tata AIA Flexi Growth Fund has a strong performance track record, with over 95% of its Assets Under Management (AUM) rated 4 or 5 stars by Morningstar, indicating its ability to deliver strong and consistent returns.
Life Cover:
The fund provides a life cover component, ensuring that your wealth is safeguarded and your loved ones are financially secure in the event of your untimely demise.
The Tata AIA Flexi Growth Fund offers a comprehensive set of benefits, making it a compelling investment option for those seeking long-term capital appreciation and a well-diversified portfolio.
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How to invest in the fund
How to Invest in the Tata AIA Flexi Growth Fund
The Tata AIA Flexi Growth Fund is an open-ended New Fund Offering (NFO) that provides a dynamic equity-oriented growth strategy. Here is a step-by-step guide on how to invest in this fund:
Step 1: Understand the Fund
Before investing, it is essential to understand the nature and objectives of the Tata AIA Flexi Growth Fund. This fund is a type of flexi-cap fund, which means it has the flexibility to invest across different market capitalisations, including large-cap, mid-cap, and small-cap holdings. The fund aims to generate long-term capital appreciation by investing primarily in equity and equity-related instruments. It offers the potential for strong returns and resilience across various market cycles.
Step 2: Evaluate Your Investment Profile
The Tata AIA Flexi Growth Fund is suitable for investors with a long-term investment horizon who are comfortable with a high-risk, high-return strategy. This fund is designed for those seeking capital appreciation over the medium to long term. It is important to assess your risk tolerance, investment goals, and time horizon before proceeding.
Step 3: Choose an Investment Platform
You can invest in the Tata AIA Flexi Growth Fund through various investment platforms. One option is to invest directly through the Tata AIA website or by contacting a Tata AIA Financial Advisor. Alternatively, you can use an online investment platform such as Policybazaar, which offers convenient online investing and expert financial guidance.
Step 4: Select a Suitable Plan
The Tata AIA Flexi Growth Fund is available with several Tata AIA Life Insurance products. Some of the plans that offer this fund include:
- Tata Capital Guarantee Solution
- Tata Smart Sampoorna Suraksha Plan
- Tata Fortune Pro - Waiver of Premium (WOP) Child Plan
- Tata Fortune Guarantee Supreme
- Tata Fortune Guarantee Plus
Step 5: Understand the Investment Process
When investing in the Tata AIA Flexi Growth Fund, you will need to provide personal details and choose the specific Tata AIA plan that suits your needs. You will then be able to explore the Flexi Growth Fund option and make your investment. The minimum monthly Systematic Investment Plan (SIP) for Tata AIA NFO plans is Rs. 2,000. The Net Asset Value (NAV) of the fund starts at Rs. 10.
Step 6: Monitor Your Investment
After investing in the Tata AIA Flexi Growth Fund, it is important to regularly monitor its performance and how it aligns with your investment goals. Remember that investing in equity-oriented funds involves risk, and the value of your investment may fluctuate over time.
By following these steps, you can invest in the Tata AIA Flexi Growth Fund and take advantage of its dynamic growth strategy. Remember to carefully consider your investment profile and seek expert advice if needed to make informed decisions.
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Frequently asked questions
The fund aims to generate long-term wealth by investing in a portfolio of stocks and being dynamically overweight or underweight across market capitalisation.
You can invest in the fund by investing in popular life insurance plans such as the TATA AIA Life Insurance Param Rakshak Solution, TATA AIA Life Insurance Param Rakshak Plus Solution, TATA AIA Life Insurance Param Rakshak II Solution, and TATA AIA Life Insurance Param Rakshak III Solution.
The fund is expected to mitigate volatility by dynamically navigating across market capitalisation. Its well-diversified portfolio across sectors and market caps also helps to navigate market uncertainty.
A Multi-cap fund provides investors with the opportunity to participate across market caps in a single fund. However, it has a mandatory restriction in terms of minimum allocation in each market cap. The Flexi Growth Fund offers unconstrained market cap allocation, allowing it to be dynamically overweight or underweight in Large/Mid/Small cap depending on relative valuation, investment opportunities, and market outlook.
