Bajaj Life Insurance has launched a new equity-linked fund- Bajaj Life Nifty 500 Low Volatility 50 Index Fund- under its unit-linked insurance plans (ULIPs), aiming to offer investors steady long-term wealth creation with lower market volatility. The New Fund Offer (NFO) remained open for subscription from April 16 to April 30, 2026.
2 Key Highlights
- Bajaj Life launches low volatility index fund offering stable returns and disciplined long-term investment approach.
- Fund tracks Nifty 500 Low Volatility 50 Index with strong large-cap allocation and diversified exposure.
The fund is designed to track the Nifty 500 Low Volatility 50 Index, focusing on stocks that demonstrate relatively stable price movements. It aims to deliver consistent compounding over the long term while offering the dual benefit of life insurance and market-linked returns.
Portfolio Allocation Strategy
According to Bajaj Life Insurance, the fund will maintain a predominantly large-cap orientation:
- Around 79% allocation to large-cap stocks
- Remaining exposure across mid- and small-cap segments
This diversified yet defensive structure is intended to reduce risk while capturing growth opportunities in India’s equity markets.
Investment Approach
The fund follows a rules-based, data-driven methodology to select 50 low-volatility stocks. Volatility is measured using the inverse of the standard deviation of one-year trailing returns.
Stock weights are capped at the lower of 5% or five times their free-float market capitalisation weight, helping limit concentration risk. The portfolio will be rebalanced semi-annually in June and December to align with market conditions.
Also Read: SUD Life launches SUD Life NIFTY Alpha 50 Index Fund
Srinivas Rao Ravuri, Chief Investment Officer at Bajaj Life Insurance said, “In an environment of heightened market uncertainty, a low-volatility passive strategy offers a compelling proposition for long-term investors. This fund applies a disciplined, data-driven approach to select stable stocks, providing a smoother investment experience while still participating in India’s growth story.”
The fund is suited for long-term investors seeking systematic equity exposure with relatively lower volatility compared to broader market indices, making it an attractive option for core portfolio allocation.
