Groww Mutual Fund Introduces Nifty India Defence ETF
Groww Mutual Fund has launched Groww Nifty India Defence ETF. The scheme provides investors with an opportunity to invest in the blooming defence industry of India. The New Fund Offer of the scheme would run from 23rd September to 4th October 2024.
Why the Defence Sector?
India’s Defence Sector is growing significantly, with able support from the government, particularly through initiatives such as ‘AtmaNirbhar Bharat,’ which fosters self-reliance and increases exports. This need for self-sufficiency in the defence segment has presented a huge potential for the growth of the industry.
Projections indicate that India’s defence production is likely to triple, touching Rs.3 lakh crore by FY 2029. The sector is also expected to have an investment pipeline worth $138 billion between FY 2024 and FY 2032. Defence exports are expected to be increased multifold with the target projected at Rs.50,000 crore by FY 2029 from the present Rs.20,000 crore.
About the Groww Nifty India Defence ETF
This includes 15 of India’s leading defence companies based on free-float market capitalization, and this follows the Nifty India Defence Index designed to track the performance of those firms.
Main Growth Drivers
The ETF provides diversified exposure to the defence sector of India, including large-cap, mid-cap and small-cap stocks. In view of increasing government spending on defence and strong order books, companies selected for this ETF have durable growth prospects.
The ETF gives exposure to capital goods and chemicals sectors, among others, hence providing diversification in the investment.
About the Nifty India Defence Index
It will track the performance of defence companies in the large, mid, and small-cap segments; 58% of the index will comprise mid and small-cap firms. These stocks are likely to have robust order books and offer clarity in future cash flows. To keep the portfolio well diversified, the weights of the stock are capped at 20% and no firm can capture all the index.
Investment Details
The minimum amount to be invested in this scheme is Rs 500 with further investments in multiples of Rs 1. No exit load is applicable for this scheme. For the complete information, all the investors are requested to refer to Scheme Information Documents (SID).
This may be a fitting platform for those wishing to take advantage of a burgeoning sector in India – defence – which gets a boost through this sector and the export value increases as well.
