HDFC Life
India Sector Leaders Opportunities Fund

What is New Fund Launch?

New Fund Launch in the context of life insurance, refers to the option to invest in a new fund or security as part of the investment component of a unit linked life insurance policy. Policyholders who choose a ULIP benefit from life insurance coverage while also having the opportunity to invest in market-linked assets. They have the flexibility to allocate a portion of their premiums to various investment options, allowing them to balance their insurance needs with their investment goals. These funds, managed by investment professionals can include a variety of asset classes such as stocks, bonds, and money market instruments.

New Fund Launch in life insurance offer several investment benefits along with life cover. Thus, there is security for the beneficiaries and possibility of capital appreciation as well, over long term.

Understanding the Basics

• What is the objective of the India Sector Leaders Opportunities Fund (ULIF08602/03/26InSctrLrFd101)?

The Fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities that are aligned to BSE India Sector Leaders Index, subject to regulatory requirements. The fund may use various derivative instruments, as permitted under applicable Regulations, to calibrate the risks in the portfolio

• What will be the benchmark? What does the benchmark signify?

The benchmark will be BSE India Sector Leaders Index. The Index aims to track the performance of a diversified portfolio of sector leaders representing the broad spectrum of the Indian economy. The index constituents are selected from the BSE 500 and are chosen based on being the top 3 companies by total market capitalization within each of the 22 recognized sectors of the economy.

The index portfolio comprises companies that are dominant players in their respective industries, whose growth is driven by their pricing power, superior brand equity, and operational resilience. The weights of the stocks in the index are determined based on their free-float market capitalization, subject to a floor of 1% and a ceiling of 5% per stock. This capping ensures that the index remains well-diversified and that no single heavyweight stock dominates the performance.

On the other hand, companies in a broad market index like the BSE 500 Index are selected and weighted purely based on their market capitalization. Unlike the BSE India Sector Leaders Index, a broad market index does not prioritize sectoral leadership or enforce specific stock-level weightage floors to maintain a balanced representation across sectors.

• What is the investment philosophy behind launching this fund?

The Fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities that are aligned to BSE India Sector Leaders Index, subject to regulatory requirements. In general, the leaders in a sector enjoy higher market share, higher growth, and superior margins relative to other companies in that sector. As a result, the sector leaders can make higher investments in products, distribution, R&D, and people, relative to other companies in that sector. The higher investments, in turn, lead to higher sales, margins, and profits. Thus, the leaders of a sector are in a continuous virtuous cycle. The higher sales and profits of sector leaders eventually lead to higher market capitalization.

Highlights of India Sector Leaders Opportunities Fund

Returns are based on 30^thJan, 2026

Source: https://www.bseindices.com/Downloads/Factsheet/Factsheet_BSEINDIASECTORLEADERS_Jan2026.pdf

India Sector Leaders Opportunities Fund (SFIN: ULIF08602/03/26InSctrLrFd101)is available with following products:

• HDFC Life Smart Protect Plus(UIN: 101L187V02)

• HDFC Life Sampoorn Nivesh Plus (UIN: 101L180V01)

• HDFC Life Click 2 Wealth (UIN: 101L133V03)

• HDFC Life Click 2 Invest (UIN: 101L178V01)

What are the Key Features?

Proven Track Record: The BSE India Sector Leaders Index has a track record that speaks for itself. It boasts an impressive 5-year benchmark return of 16.74%**. This consistent performance level indicates stability and reliability, making it an attractive option

Source: https://www.bseindices.com/Downloads/Factsheet/Factsheet_BSEINDIASECTORLEADERS_Jan2026.pdf

Data as of 30^th Jan, 2026

BSE India Sector Leaders Index is relatively overweight large-cap companies with exposure of 82% and balance 18% exposures are to mid and small cap stocks. Over last one year, both the midcap and small caps have underperformed large cap indices thereby impacting the performance of BSE India Sector Leaders Index. However, the performance remains superior over the longer time periods as both Midcap and small cap companies offer significant future growth potential. Hence investing for a longer period in blended index such as BSE Sector Leaders creates compounding benefits.

Investment Strategy: The Fund aims to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities that are aligned to BSE India Sector Leaders Index, subject to regulatory requirements. In general, the leaders in a sector enjoy higher market share, higher growth, and superior margins relative to other companies in that sector. As a result, the sector leaders can make higher investments in products, distribution, R&D, and people, relative to other companies in that sector. The higher investments, in turn, lead to higher sales, margins, and profits. Thus, the leaders of a sector are in a continuous virtuous cycle. The higher sales and profits of sector leaders eventually lead to higher market capitalization.