PNB MetLife Launches Dividend-Focused Index Fund Under ULIP Plans
PNB MetLife India Insurance launched the PNB MetLife Dividend Leaders Index Fund under its ULIP plans, tracking the BSE 500 Dividend Leaders 50 Index and focusing on companies with strong dividend histories across energy, technology, commodities and utilities sectors. The fund, available through GEM and Smart GEM products, launched with ₹10.00 initial unit price on January 16 with first NAV declaration scheduled for January 30. Targeting policyholders seeking passive long-term equity exposure, the fund allocates 60-100% to benchmark equities with remaining assets in money market instruments, offering dividend reinvestment with built-in life insurance coverage through Policybazaar distribution partnership.
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PNB MetLife India Insurance has expanded its unit-linked insurance plan (ULIP) offerings with the launch of a new dividend-oriented index fund, providing policyholders with enhanced long-term equity investment opportunities. The PNB MetLife Dividend Leaders Index Fund represents a strategic addition to the insurer's investment portfolio, combining passive equity exposure with life insurance coverage.
Fund Structure and Investment Strategy
The new fund operates as a passive equity fund that tracks a customised version of the BSE 500 Dividend Leaders 50 Index. This benchmark selects 50 companies from the broader BSE 500 universe, focusing specifically on firms with established dividend payment histories across multiple sectors.
| Investment Parameter: | Details |
|---|---|
| Benchmark Index: | BSE 500 Dividend Leaders 50 Index (Customised) |
| Equity Allocation: | 60% to 100% of assets |
| Remaining Allocation: | Money market instruments |
| Investment Focus: | Companies with dividend track record |
| Sector Coverage: | Energy, technology, commodities, utilities |
In compliance with regulatory requirements, the fund maintains an equity allocation ranging between 60% and 100% of its total assets in securities that comprise the benchmark index. The remaining portion is allocated to money market instruments to ensure adequate liquidity management.
Product Availability and Launch Details
The dividend-focused fund is accessible through two of PNB MetLife's existing ULIP products: the Goal Ensuring Multiplier (GEM) and Smart Goal Ensuring Multiplier (Smart GEM). This integration allows existing and new policyholders to access the fund through established insurance frameworks.
| Launch Details: | Information |
|---|---|
| Initial Unit Price: | ₹10.00 |
| New Fund Offer Start: | January 16 |
| First NAV Declaration: | January 30 |
| Distribution Partner: | Policybazaar |
The fund launched with an initial unit price of ₹10.00 during the new fund offer period that commenced on January 16. The first net asset value (NAV) calculation is scheduled for declaration on January 30, marking the fund's transition to regular trading operations.
Target Audience and Investment Approach
PNB MetLife has positioned this fund specifically for policyholders seeking passive, long-term equity exposure through ULIP structures. The fund's design emphasises dividend income reinvestment, where dividends generated by underlying portfolio companies are automatically reinvested within the fund rather than distributed to investors.
The product maintains the standard ULIP feature of inbuilt life insurance coverage, providing dual benefits of investment growth potential and life protection. This combination addresses the needs of investors looking for systematic, benchmark-driven investment strategies while maintaining insurance coverage.
Market Positioning and Distribution
The fund launch reflects the growing trend among insurance companies to offer index-linked and rule-based investment options within insurance products. PNB MetLife has partnered with online insurance distributor Policybazaar for fund distribution, leveraging digital channels to reach potential investors.
This strategic move aligns with increasing customer preference for systematic and benchmark-driven investment approaches, particularly in the ULIP segment where transparency and performance tracking are key considerations for long-term financial planning.
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