Bajaj Allianz Life ULIP NFOs: Smart Investing for 2025 and Beyond

VMPL

New Delhi [India], May 20: As 2025 begins, Indian investors are looking for smart ways to grow wealth while optimising tax benefits. One emerging trend is investing in New Fund Offers (NFOs) within Unit Linked Insurance Plans (ULIPs). These NFOs offer a mix of market growth, insurance cover, and tax efficiencya rare trio in personal finance.

Bajaj Allianz Life Insurance has launched a new ULIP-linked NFO: the Bajaj Allianz Life Nifty 200 Alpha 30 Index Pension Fund. Let's understand what ULIP NFOs are, how they differ from mutual fund NFOs, and who they are best suited for.

What are ULIP-Linked NFOs?

A New Fund Offer (NFO) is when a new investment fund is introduced to the market. In mutual funds, NFOs allow investors to get in early on new strategies or themes. Similarly, ULIP-linked NFOs are new funds that can be selected as part of your ULIP plan.

The difference? ULIP NFOs come with built-in life insurance cover and tax-saving benefits under Section 80C and 10(10D). Plus, you can switch between funds within the ULIP without any tax eventsomething mutual funds don't offer.

NFO Spotlight: Bajaj Allianz Life Nifty 200 Alpha 30 Index Pension Fund

This latest NFO by Bajaj Allianz Life Insurance aims to capture India's structural growth story through a focused investment approach.

Key highlights:

* Tracks the Nifty 200 Alpha 30 Index - an index of 30 high alpha stocks selected from the Nifty 200 universe.

* Alpha-focused strategy - aims to deliver better risk-adjusted returns.

* Diversified market cap - includes large, mid, and small-cap stocks.

* Suited for long-term retirement planning - positioned under pension ULIP options.

This fund is ideal for those who want to invest in top-performing stocks based on a scientific method, while also planning for retirement.

Who should consider ULIP-Linked NFOs?

ULIP NFOs aren't for everyone. But they work very well for some investor types:

* Young professionals

Looking to grow wealth over time? ULIP NFOs are great for starting early. You get equity exposure and insurance in one plan. Plus, you build financial discipline with regular premium payments.

* High Net-Worth Individuals (HNIs)

ULIP NFOs offer a chance to explore new investment ideas without triggering capital gains tax when switching funds. HNIs can use these NFOs to diversify portfolios while also getting succession and estate planning benefits from life insurance.

* Tax-savvy planners

If you're maxing out your Section 80C every year, ULIP Plans with new fund options give you tax-saving plus market participation. Unlike mutual funds, switching between funds in a ULIP doesn't attract any tax.

Why ULIP NFOs make sense in 2025?

India's economic growth is expected to continue, backed by digital innovation, infrastructure, and manufacturing. Equity markets are expanding, and thematic investing is gaining attention. ULIP NFOs help investors access such focused strategies within a goal-based financial product.

For instance, the Nifty 200 Alpha 30 Index fund uses quantitative screening to pick the top 30 alpha-generating stocks from across sectors. That's smart investing made simpleand insurance-backed.

Key benefits of ULIP NFOs vs Mutual Fund NFOs

When choosing between ULIP NFOs and mutual fund NFOs, it's important to understand the unique benefits each offers. While mutual funds focus purely on returns, ULIP NFOs combine growth, protection, and tax efficiency. Here's a quick comparison to help you decide which suits your financial goals better:

Final thoughts

ULIP-linked NFOs, like the Bajaj Allianz Life Nifty 200 Alpha 30 Index Pension Fund, are designed for future-ready investors. If you want to combine market growth with financial protection and tax planning, this could be the next step for your portfolio.

Think of them as your wealth creation toolkit with a built-in safety net.

Explore, evaluate, and if it fits your goalinvest smart with ULIP NFOs in 2025.

NFO Details:

Bajaj Allianz Life Presents Nifty 200 Alpha 30 Index Pension Fund under New ULIP pension product:

* Available at Rs. 10 NAV**, from 16th - 30th May 2025

* Life cover and no medical test*

* High growth potential

* 100% digital process

* Potential returns up to 29.6%^

Disclaimer- *T&C Apply - Bajaj Finance Limited ('BFL') is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Co. Limited , Star Health & Allied Insurance Co. Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. **Not available if policy issued after 30th May 2025. ^ As on 28th March 2025. Past 5 year CAGR Returns in Benchmark- Nifty 200 Alpha 30 Index. Please note that the fund aims to replicate the performance of benchmark index fund, subject to tracking error. Past returns of a fund are not necessarily indicative of the future performance of the fund. Please consult the financial advisor before investing. URN No. BFL/Advt./24-25/754

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