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Bajaj Allianz Life Nifty Alpha 50 Index Fund

Bajaj Allianz Life Nifty Alpha 50 Index Fund is a New Fund that tracks the top 50 stocks with the highest Alpha among the top 300 stocks based on free float market capitalization listed on NSE.

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Bajaj Allianz Life Nifty Alpha 50 Index Fund follows passive investment strategy where it replicates the performance of Nifty Alpha 50 Index. The top 300 stocks are a mix of Large Cap, Mid Cap and Small Cap stocks.

The Alpha (α) (shorter version of Jensen Alpha) refers to excess return provided by a stock / investment over and above the expected return (based on Capital Asset Pricing Model). The weights in the index are assigned in proportion to their alpha value. Read less

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry.
Reviewed ByRituraj Singh
AboutRituraj Singh
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Rituraj Singh,With over 6.5 years of experience in the insurance industry, Rituraj Singh, Manager- Product & Brand Marketing at Bajaj Allianz Life Insurance overlooks new product launches, compliance, and brand projects, leveraging artificial intelligence and technology to enhance outcomes.
Written on: 20th July 2024
Modified on: 31st July 2024
Reading Time: 10 Mins
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What is Nifty Alpha 50 Index Fund?

Nifty Alpha 50 Index tracks the performance of top 50 stocks with high Alphas in last one year. Historically, it has been a diversified 50 stocks index across market segments like Large Cap, Mid Cap and Small Cap and sectors. In order to make the 50 stocks index investible and replicable, criteria's such as high Alpha Value, liquidity and market capitalization are applied while selection of securities. Weights of securities in the index are assigned based on the alpha values i.e. security with highest alpha in the index gets highest weight.

Benchmark: Nifty Alpha 50 Index

Risk Profile: Very High

SFIN No.: ULIF09221/05/24HYAPA50IND116

Disclaimer - Please note that the fund aims to replicate the performance of benchmark index fund, subject to tracking error.

What is the criteria for selecting the stocks in the index?

 

Eligibility Criteria

  • Minimum listing history of 1 year of stock
  • The stock’s trading frequency should be 100% in the last one-year period
  • Top 300 stocks based on free float market capitalization. The 50 stocks are selected which have the highest alpha and the portfolio weightage is in proportion to their alpha value. .

Key Highlights

  • The index has a base date of December 31, 2003, with a base value of 1000. However, it was launched on November 19, 2012.
  • The review of Nifty Alpha 50 index is undertaken on quarterly basis using data of six-month period ending last trading day of February, May, August and November.
  • Alphas of eligible securities are calculated using 1-year trailing prices (Adjusted for corporate actions) and ranked in descending order.

Why Nifty Alpha 50 Index Fund?

  • High Growth Potential

    The Nifty Alpha 50 Index includes 50 stocks with the highest alpha in the top 300 stocks based on free float market capitalization. The historical allocation suggests that the index is largely tilted towards Mid Cap & Small Cap segment. This segment tends to outperform the market/benchmark in the long-term, offering high growth potential, but also come with relatively higher risk profile.

  • Diversification

    Investing in an index fund that tracks the Nifty Alpha 50 index provides exposure to a diversified set of high-performing stocks across various sectors.

  • Transparency

    Since it tracks an established index, investors can easily monitor the fund's portfolio holdings and performance.

  • Passive Investing

  • Investing in an index fund that tracks the Nifty Alpha 50 Index is a passive approach, which means fund manager doesn’t need to make individual stock selection (hands-off approach).

Nifty Alpha 50 Index

Sector Representation

Sector Weight(%)
Financial Service 27.73
Capital Goods 23.00
Power 12.28
Healthcare 6.11
Reality 3.78
Construction 7.18
Consumer Services 4.67
Information Technology 2.36
Consumer Durables 5.72
Metals & Mining 3.38
Automobile & Auto Components 2.33
Fast Moving Consumer Goods 1.00

Top Constituents by weightage

Company's Name Weight(%)
Kalyan Jewellers India Ltd. 3.86
Suzlon Energy Ltd. 3.77
Indian Railway Finance Corporation Ltd. 3.72
BSE Ltd. 3.59
Housing & Urban Development Corporation 3.51
REC Ltd. 3.27
Rail Vikas Nigam Ltd. 3.10
Titagarh Rail Systems Ltd. 3.00
SJVN Ltd. 2.82
Bharat Heavy Electricals Ltd. 2.75

Source: NSE, Respective Index Factsheets, Data as on 31 July 2024

 

Why you should invest in Bajaj Allianz Life Nifty Alpha 50 Index Fund?

 

  • Nifty Alpha 50 Index Performance:

    • 34%* CAGR Returns over last 5 Years.
    • Nifty Alpha 50 index has delivered 81.5%* return over the past 1 year, helped by market buoyancy & momentum (esp. in mid/small-cap stocks)
    • Over the long term (5 yrs & 10 yrs), Nifty Alpha 50 index has outperformed other market cap (large/mid/small-cap) indices by a considerable margin.
    • Nifty Alpha 50 index has outperformed the Nifty 50 index** in six out of ten past calendar year.
    • However, historical data suggest that Nifty Alpha 50 Index has been Mid Cap & Small Cap Oriented
    • Market Cap Categorization Sep-21 Dec- 21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Apr-24 May-24
      Large Cap 37% 33% 15% 12% 47% 41% 37% 31% 17% 27% 36% 38% 38%
      Mid Cap 41% 40% 33% 45% 40% 40% 57% 46% 50% 44% 49% 43% 44%
      Small Cap 22% 27% 52% 43% 13% 19% 6% 23% 33% 29% 15% 19% 18%
      Mid Cap+Small Cap 63% 67% 85% 88% 53% 59% 63% 69% 83% 73% 64% 62% 62%

      Data Source- NSE and BALIC Research (Investment Team )

    • The allocation in Mid & Small Cap segment remained higher than Large Cap.
    • In last ~4 years, the quarterly average allocation in Mid & Small Cap stocks is ~70%.
    • Hence, it indicates that Nifty Alpha 50 Index has a High Risk High Return profile

 

Sources
NSE, Respective Index Factsheets, Data as on  31 July 2024
URL- https://www.niftyindices.com/Factsheet/Factsheet_Nifty_Alpha50.pdf

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Past performance is not indicative of future performance

Please note that the fund aims to replicate the performance of benchmark index fund, subject to tracking error.

*as on 31st May 2024

** Since Dec 2013 to Dec 2023 (Calander Year wise)

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Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

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Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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Disclaimer

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Goal Assure II- A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN No.: 116L180V02) is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

^Minimum premium mentioned is applicable for Bajaj Allianz Life Goal Assure II - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L180V02)

1Loyalty Additions are payable only for premium of  ₹ 5 Lakhs & above and wherein the Policy term is 10 years & above.


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

 

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Disclaimer

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Goal Assure II- A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN No.: 116L180V02) is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Bajaj Allianz Life Goal Assure II - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L180V02)

**Return of Mortality Charges at Maturity (ROMC) is payable at maturity, provided all due premiums have been paid

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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