Groww Mutual Fund Launches 2 New Passive Investment Plans
Groww Mutual Fund has introduced two new passive investment schemes Groww Nifty 200 ETF and Groww Nifty 200 ETF FOF to enable investors to diversify across large-cap and mid-cap stocks at a low cost.
Groww Nifty 200 ETF is an open-ended scheme that tracks the Nifty 200 Index (TRI). Groww Nifty 200 ETF FOF is an open-ended fund of funds scheme that invests in the units of Groww Nifty 200 ETF.
The new fund offer of these two passive funds is set to open for subscription on 7th February, 2025 and to be closed on 21st February, 2025. The schemes will remain opened in continuous sale and repurchase on or before March 10, 2025.
Fund Information and Structure of New Funds of Groww Mutual Fund
- Groww Nifty 200 ETF: Open Ended, Exchange Traded Fund Tracking Nifty 200 Index – TRI.
- Groww Nifty 200 ETF FOF: A fund-of-fund scheme mainly investing in units of the Groww Nifty 200 ETF.
The funds are created to provide long-term capital appreciation through tracking the Nifty 200 Index. The schemes will be benchmarked against the Nifty 200 Index TRI and managed by Abhishek Jain.
Investment Strategy of New Funds of Groww Mutual Fund
- Groww Nifty 200 ETF will invest 95-100% of its assets in equities in the Nifty 200 Index and 0-5% in money market instruments or debt securities.
- The ETF will be passively managed and will hold the stocks in the same proportion as in the index.
- The fund will focus on keeping the tracking error minimum by constant portfolio rebalancing.
- Groww Nifty 200 ETF FOF will invest 95-100% of its corpus in units of Groww Nifty 200 ETF and 0-5% in debt/money market instruments.
Groww Mutual Fund NFO Investment Details
- Minimum Invest: Rs.500 (in multiples of Re. 1 thereafter).
- SIP Investment:
- Monthly SIP: Rs.100 (minimum 12 installments).
- Quarterly SIP: Rs.300 (minimum).
Exit Load Structure of New Funds of Groww Mutual Fund
- Groww Nifty 200 ETF: There will be no exit load.
- Groww Nifty 200 ETF FOF: An exit load of 1% will be applicable if redeemed within 30 days from the date of allotment; no exit load if redeemed after 30 days from the date of allotment.
Objectives of these Groww Mutual Fund Schemes
The main investment objective is to achieve long-term capital growth by investing in Nifty 200 Index securities in the same proportion/weightage, with the goal of providing returns before expenses that track the Nifty 200 Index’s total return, subject to tracking mistakes.
Conclusion
These passive schemes are expected to be launched by the Groww Mutual Fund. This will enable the house to provide access to the Nifty 200 Index for investors using an easy and cost-effective access model. The funds are positioned to create long-term wealth through a diversified large-cap and mid-cap portfolio that still captures the benefits of the low-cost structure of passive investing.
