The fund is designed to track the BSE 500 Dividend Leaders 50 Index and will invest in 50 companies identified for their consistent dividend distribution history. According to the company, the portfolio will follow a passive investment strategy in line with IRDAI guidelines, with no active stock selection by any fund manager.
The fund allocates 70%-100% of assets to equities, while up to 30% may be held in cash and money market instruments to manage liquidity needs. Dividend income generated from the underlying shares will be reinvested within the fund rather than distributed, with the aim of supporting long-term compounding for retirement accumulation.
The New Fund Offer (NFO) is open for subscription from May 20 to May 27, 2026. The units are priced at a base net asset value (NAV) of ₹10 during the NFO period.
The pension fund is available under Tata AIA’s unit-linked pension products, which include Smart Pension Secure and Premier Pension Secure. These products include market-linked investment risks as well as life insurance coverage.
The company said the structure is intended to provide exposure to financially stable, dividend-paying businesses while maintaining a rules-based investment approach consistent with retirement planning needs.
The fund bears market-linked risks, and returns will depend on the underlying equity performance. The insurer also said that unit-linked insurance products do not guarantee returns and are subject to product-specific conditions, including market fluctuations and a lock-in period of five years.
The launch comes amid continued interest in index-based and passive investment strategies within India’s insurance-linked retirement product segment.