The fund is benchmarked to the Nifty Midcap 150 Index, which tracks 150 companies ranked immediately after the top 100 firms by market capitalisation. The insurer said the fund will be offered through its unit-linked insurance plan (ULIP) products that provide policyholders with equity investment options.
According to the company, the fund seeks long-term capital appreciation by investing in a diversified portfolio of midcap companies selected from the top 150 midcap stocks. The strategy will follow a framework combining quality and momentum factors to identify financially strong businesses with sustained earnings growth and positive price trends.
Midcap companies are considered an important segment of India’s equity market and often expand into large-cap firms as they scale operations. However, investments in this segment may also experience relatively higher volatility compared with large-cap stocks.
Commenting on the launch, Pankaj Gupta, Managing Director and CEO of Pramerica Life Insurance, said mid-sized enterprises are playing an increasing role in India’s economic expansion and the fund aims to provide policyholders a structured way to participate in this segment.
Abhishek Das, Chief Investment Officer at the company, said the investment approach combines financially stable companies with firms benefiting from emerging trends, while acknowledging that midcap investments may carry higher short-term volatility.
Pramerica Life Insurance is a joint venture between Piramal Capital & Housing Finance Limited and Prudential Financial, Inc.. The insurer began operations in India in 2008 and distributes its products through multiple channels across the country.