NFO Period: 16th April – 30th April;
FinTech BizNews Service
Mumbai, 16 April 2026: Bajaj Life Insurance, one of India's leading private life insurers, has announced the launch of its New Fund Offer (NFO), Bajaj Life Nifty 500 Low Volatility 50 Index Fund. Available under Bajaj Life’s unit-linked insurance plans, the fund enables policyholders to pursue capital appreciation while benefiting from the dual advantage of life cover and a disciplined investment approach.
The fund is designed to provide steady compounding over the long term and predominantly focuses on defensive, large-cap, and mid-cap stocks. It tracks the Nifty 500 Low Volatility 50 Index, which selects the top 50 stocks from the Nifty 500 universe that have demonstrated relatively stable price movements with lower fluctuations compared to the broader market. The fund currently exhibits a strong large-cap orientation, with approximately 79% allocated to large-cap stocks, while the remaining is distributed across mid-cap and small-cap segments. This composition offers investors a diversified yet defensively positioned equity portfolio structured to reduce volatility.
Speaking on the launch, Mr. Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Life Insurance, said, “In an environment of heightened market uncertainty, we believe a low-volatility passive strategy offers a compelling proposition for long-term investors. The Bajaj Life Nifty 500 Low Volatility 50 Index Fund applies a disciplined, data-driven methodology to select stocks that have demonstrated price stability, offering a smoother investment experience without compromising the opportunity to participate in India's equity growth story. We believe this fund can serve as an effective core allocation for investors looking to build wealth steadily over time.”
The fund follows a rules-based, transparent methodology that selects 50 stocks based on their low volatility scores—calculated as the inverse of the standard deviation of one-year trailing price returns. To ensure the portfolio remains aligned with evolving market conditions, the index is reconstituted semi-annually in June and December. Individual stock weights are capped at the lower of 5% or five times their free-float market-cap weight at the time of inclusion in the index, helping reduce concentration risk and maintain portfolio stability.
The fund is intended for long-term investors seeking systematic, rules-based equity exposure with relatively lower volatility than the broader market.
