PNB MetLife India Insurance on Monday announced the launch of its new fund PMLI Small Cap Fund in ULIP segment.

The Unit Linked Insurance Plan (ULIP) segment of the fund offers policyholders the chance to invest in a diversified equity portfolio with a focus on small-cap companies.

This fund will be available at a unit price of Rs 10 during the New Fund Offer (NFO) period from February 19, 2024, to February 29, 2024.

Customers can participate in the new fund through various ULIP plans offered by the company, including PNB MetLife Smart Platinum Plan, PNB MetLife Goal Ensuring Multiplier Plan, and PNB MetLife Mera Wealth Plan.

Sanjay Kumar, chief investment officer at PNB MetLife, said during the launch, "The small cap fund presents exciting potential for investors to benefit from economic reforms and macro-economic tailwinds by capitalising on stock selection backed by thorough fundamental research."

"The small cap fund aims to invest in a basket of mainly small-sized companies that exhibit the potential to be future large caps and are well-placed to benefit from India's strong economic growth. The fund advocates a long-term investment horizon to ride over the short-term fluctuations and capture long-term growth potential," Kumar added.

A ULIP is a combination of life insurance and investment, where a part of the premiums paid by the policyholder is utilized to provide life insurance coverage, while the remainder (post expenses, if any) is invested in various equity and debt instruments or a combination of both, according to the policyholder's risk appetite.