Bajaj Allianz Life Mid Cap Index Fund NFO Launched – Should you invest?

financialexpress.com:

Bajaj Allianz Life, one of the leading private life insurers, has launched the Bajaj Allianz Life Mid Cap Index Fund NFO. This fund is designed to capture the growth opportunities presented by mid cap equities with a focus on providing investors with capital appreciation. Its objective is to generate returns by investing in the constituents of the Nifty Midcap 150 Index. The NFO period for Bajaj Allianz Life Mid Cap Index Fund ends on 28th November 2023.

According to the company, investing in the Bajaj Allianz Life Mid Cap Index Fund offers several compelling reasons. Firstly, it aims to provide investors with the opportunity for capital appreciation by strategically focusing on mid-cap equities known for their higher growth potential. The fund is well diversified by investing in a broad spectrum of stocks from the Nifty Midcap 150 Index, thus spreading risk across different sectors and companies.

There is also transparency as it’s an index fund, and investors can easily monitor the fund’s portfolio and performance.

Commenting on the launch, Sampath Reddy, Chief Investment Officer, Bajaj Allianz Life Insurance, said, “Historical data shows that mid-cap indices have helped in wealth creation for investors over the long term and managed to outperform the large-cap indices by a substantial margin. As of September 2023 end, the Nifty Midcap 150 index has delivered a return of 21.2% (CAGR) over a 10-year period, while the Nifty 50 index has returned 13.1% (CAGR) over the same period.”

Also Read: Secured vs Unsecured Loan: Which should you opt for?

“Therefore, investors are realizing the need to diversify their portfolio and have exposure to different market-cap segments as per their risk profile and investment horizon. The