Aviva Life Insurance Company launched its 9th Fund called Dynamic P/E Fund to address customers’ concerns over market volatility and fluctuations.
The fund option will be available to policyholders on five products – Aviva Young Scholar Advantage, Aviva Sachin Extra Cover Advantage, Aviva Life Bond Advantage, Aviva Freedom Life Advantage, and Aviva Life Saver Advantage. These plans are the best-selling insurance products of Aviva Life.
Dynamic P/E Fund is based on the simple mantra of encashing investments when the markets are high and buying when the markets are low. This provides protection as well as helps customers create wealth.
Speaking on the launch of the Dynamic P/E fund, Ms. Jyoti Vaswani, CIO & Director – Fund Management, Aviva India, said, “At Aviva, we seek to provide prosperity and peace of mind to our customers through our product portfolio. The launch of the Dynamic P/E fund with select ULIPs is a step in the same direction. The fund has been designed in recognition of the customer need for disciplined investing and building a desired corpus over the long term. Usually, customers tend to invest when the markets are rising and withdraw when they are falling, which is not an ideal market strategy. Investing in Aviva’s new Dynamic P/E fund will ensure that investments are made in a systematic way to ensure prosperity and peace of mind for customers.”
It is based on forward P/E Multiples in order to reduce the risk of investment while targeting higher returns. It works on the principle that at higher PE multiples, the equity allocation is reduced in order to reduce the downside risk, and at lower PE multiples, the equity allocation is increased to capitalize on the upside potential.
The Indian stock markets are well positioned for a sustained long-term rally with strong corporate and economic fundamentals, although there could be some volatility along the way. Aviva Dynamic P/E Fund, with its inbuilt buy-sell discipline, will help customers make the most of this growth opportunity, while providing a smoother ride to their investments.
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