Unit Linked Insurance Plans (ULIPs) by Tata AIA Life Insurance have become a standout performer in the financial market, providing high returns while meeting insurance needs. Over the past five years, Tata AIA ULIPs have delivered returns of 27% to 28%, significantly outperforming their benchmarks.
For investors seeking a combination of wealth creation, tax benefits, and insurance, Tata AIA’s ULIP schemes are emerging as a robust option.
Five-Year Performance: Surpassing Benchmarks
Tata AIA Life’s ULIP funds have consistently outshone their benchmarks. Here’s a look at the performance of their top funds as of November 30, 2024:
| Fund Name | Annual Return (%) | Benchmark Return (%) |
| Multi Cap Fund | 28.22% | 17.12% |
| Top 200 Fund | 28.52% | 17.12% |
| India Consumption Fund | 26.95% | 17.12% |
These impressive numbers showcase Tata AIA’s ability to deliver long-term, stable, and risk-adjusted returns through their carefully managed funds.
New Fund Offers Shine Bright
Tata AIA Life’s New Fund Offers (NFOs) launched between December 2022 and December 2023 have also outperformed. Here’s how they fared:
| Fund Name | Annual Return (%) | Benchmark Return (%) |
| Emerging Opportunities Fund | 39.16% | 34.10% |
| Dynamic Advantage Fund | 29.35% | 15.08% |
| Sustainable Equity Fund | 31.42% | 27.18% |
| Small Cap Discovery Fund | 56.27% | 42.29% |
| Flexi Growth Fund | 25.35% | 16.77% |
Driving Success: AUM and Star Ratings
Tata AIA’s total Assets Under Management (AUM) reached ₹1,17,867.73 crore as of November 2024, a 35.91% growth from the previous year. According to Morningstar, an impressive 96.19% of these assets hold 4-star or 5-star ratings. This highlights the company’s commitment to excellence in fund management.
Why Tata AIA ULIPs Stand Out
- High Returns with Insurance: Tata AIA’s ULIPs not only provide market-linked returns but also offer life insurance coverage, ensuring dual benefits for policyholders.
- Tax Savings: Under Section 80C, annual premium payments up to ₹1.5 lakh are tax-exempt. Additionally, maturity benefits are tax-free if the annual premium does not exceed 10% of the sum assured.
- Strategic Fund Management: The company’s bottom-up stock-picking strategy focuses on high-growth sectors, ensuring robust performance.
Carving a Niche: Ideal for Whom?
Tata AIA ULIPs are suitable for investors looking to combine wealth creation, tax benefits, and insurance protection in a single product. However, it’s important to note that being market-linked, returns are not guaranteed. Mortality charges for the insurance component are also deducted from the fund’s returns.
The CIO’s Perspective
Harshad Patil, EVP & CIO of Tata AIA Life, emphasized their focus on delivering risk-adjusted returns through robust research. “Our investment strategy ensures stable and long-term growth for policyholders,” he stated.
Tax Rules to Note
- Exemption on Premium: Annual premiums up to ₹1.5 lakh qualify for tax deductions under Section 80C.
- Tax-Free Maturity Benefits: Conditions apply, such as premiums not exceeding 10% of the sum assured.
- LTCG Tax: For policies exceeding ₹2.5 lakh annual premium, Long-Term Capital Gains (LTCG) tax applies at 12.5% on gains above ₹1.25 lakh.
Tata AIA ULIPs are a compelling option for those seeking balanced growth and security in their financial journey. Whether you’re a seasoned investor or a first-timer, these plans are worth exploring for the dual benefits they offer.
