Aviva Life Insurance, one of the leading private life insurance providers in India, has announced the launch of a new fund that aims to offer long-term wealth creation opportunities to its customers. The fund, called Aviva Mid-Cap Fund, is a part of Aviva’s unit-linked insurance plans (ULIPs) and invests mainly in mid-cap equities that have high growth potential.
What is Aviva Mid-Cap Fund and how does it work?
Aviva Mid-Cap Fund is a carefully curated portfolio that invests primarily in mid-cap equities, which are companies with a market capitalization between ₹500 crore and ₹10,000 crore. These companies are expected to benefit from the strong economic growth and recovery in India, as well as the structural reforms and policy initiatives undertaken by the government.
The fund aims to provide long-term capital appreciation to the investors by identifying and investing in quality mid-cap companies that have strong fundamentals, competitive advantages, and sustainable growth prospects. The fund also follows a disciplined risk management approach to ensure optimal diversification and minimize volatility.
The fund is available with all Aviva’s ULIPs, which are insurance products that combine life cover with investment returns. The customers can choose the fund option according to their risk appetite, investment horizon, and financial goals. The fund has a lock-in period of five years, after which the customers can withdraw or switch their funds as per their convenience.
Why should investors opt for Aviva Mid-Cap Fund?
Aviva Mid-Cap Fund offers several benefits to the investors who are looking for long-term wealth creation opportunities. Some of the benefits are:
- Higher returns potential: Mid-cap companies have the potential to deliver higher returns than large-cap companies, as they have more room for growth and expansion. They also tend to be more agile and innovative, and can adapt faster to the changing market conditions and customer preferences.
- Lower valuation: Mid-cap companies are often undervalued by the market, as they are less covered by analysts and media. This creates an opportunity for the fund managers to identify and invest in hidden gems that can offer superior returns in the long run.
- Tax benefits: The investments in Aviva Mid-Cap Fund are eligible for tax benefits under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh per annum. The maturity proceeds are also tax-free under Section 10(10D), subject to certain conditions.
- Life cover: The investors also get the benefit of life cover along with the fund, which ensures financial security for their family in case of any unfortunate event. The life cover amount depends on the type of ULIP chosen by the customer.
How can investors participate in Aviva Mid-Cap Fund?
The investors can participate in Aviva Mid-Cap Fund by opting for any of Aviva’s ULIPs, such as Aviva i-Growth, Aviva i-Wealth, Aviva Affluence, Aviva Wealth Builder, or Aviva Young Scholar Advantage. The investors can choose the fund option according to their risk profile and investment objective. The minimum investment amount is ₹50,000 for a single premium and ₹25,000 for a regular premium.
The fund is currently open for subscription till February 6, 2024, at a unit price of ₹10. The investors can apply online through Aviva’s website or offline through Aviva’s branches or agents.
Vinit Kapahi, Senior Vice President and Head of Marketing at Aviva India, expressed his confidence in the fund and said, “We are thrilled to unveil our latest financial offering – MidCap Fund. We believe the Midcap Fund will play a pivotal role in enhancing the investment options that have the potential to yield significant outcomes for our customers. It will be available with all our Unit Linked Products.”
Aviva India is a joint venture between Dabur Invest Corp, one of India’s oldest and most respected business houses, and Aviva plc, a leading international insurer with a history of over 300 years. Aviva India offers a range of life insurance products and services to cater to the diverse needs of its customers.