New Fund Offers (NFOs) have become an exciting way for investors to explore fresh opportunities. In the world of ULIPs (Unit Linked Insurance Plans), NFOs offer more than just market growth—they also give policyholders the power of life insurance and wealth creation in one plan.
As more people look for smart ways to grow their money while staying protected, NFOs within ULIPs stand out. Let’s understand how they work, and how you can use them to your advantage.
What is an NFO in a ULIP?
An NFO, or New Fund Offer, is when a life insurance company introduces a new fund within its ULIP scheme. It works much like an NFO in mutual funds. But in ULIP Plans, investors also get the benefit of life cover, tax savings, and the option to switch funds based on market performance.
The recently launched Bajaj Allianz Life Focused 25 Fund is a good example. This fund invests in up to 25 strong, large-cap companies with growth potential. It is designed to help policyholders benefit from India’s long-term economic rise while staying protected by insurance.
What is Bajaj Allianz Life Focused 25 Fund?
This fund will invest in up to 25 high-conviction stocks. The goal is simple: focus on select companies that show strong growth potential. By limiting the number of stocks, the fund aims to create a high-impact portfolio, while still managing risk through sector and size diversification.
Key features:
- Stock selection: Focused on up to 25 strong companies.
- Diversified market cap: Includes large-cap, mid-cap, and small-cap stocks.
- Active management: Fund managers actively track and switch holdings to maximise returns.
- Part of ULIP: Available as an investment option within Bajaj Allianz Life ULIP plans.
Why are NFOs in ULIPs gaining popularity?
NFOs in ULIPs are gaining attention for several reasons:
- Thematic exposure: New funds are often based on themes like ESG, technology, or top-performing companies. This lets you ride market trends.
- Professional management: Fund managers choose strong stocks based on research, giving you better chances of returns.
- Insurance + investment: You don’t just invest—you also stay protected with life insurance throughout the policy term.
- Tax benefits: ULIP premiums offer tax deductions under Section 80C, and maturity proceeds may be tax-free under Section 10(10D) (subject to certain conditions).
Fund manager view – Smart allocation, thematic focus
Fund managers at Bajaj Allianz Life are building this portfolio based on long-term trends like:
- India’s strong economic fundamentals
- Industry leaders in high-growth sectors
- Risk-managed exposure across market capitalisations
They use market research, company analysis, and data-driven models to pick the best-performing stocks. The aim is to ride India’s growth wave without over-diversifying.
How can you maximise growth potential with ULIP NFOs?
Here are smart ways to benefit from NFOs within ULIPs:
1. Diversify your portfolio
NFOs help you add fresh ideas to your portfolio. If your ULIP already has balanced or debt funds, adding an NFO with equity focus can balance your risk and return.
2. Switch funds as needed
ULIPs offer free switches between funds. If a new fund is doing better or suits current market trends, you can shift money from older funds. This keeps your investment up to date.
3. Stay invested for the long term
ULIPs are ideal for long-term goals. New funds, like Focused 25, are designed for growth over 10 to 15 years. Staying invested helps ride out market ups and downs.
4. Match fund to your risk level
Every investor is different. Some NFOs focus on stable large-cap stocks, while others may look at mid-caps or new sectors. Choose funds that match your comfort with risk.
Conclusion
NFOs in ULIPs offer the best of both worlds—growth and protection. As more ULIP providers launch funds focused on new themes, policyholders have more choices to build wealth wisely.
If you are a long-term investor looking for tax-saving options, growth, and life cover, ULIPs with NFOs could be the right move. Speak with your advisor, explore new fund offers, and align your ULIP with your future goals.
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. URN No. BFL/Advt./24-25/753
