NFO Alert: Groww Nifty India Railways PSU Index Fund & ETF Now Open for Subscription
The Groww Mutual Fund’s New Fund Offer (NFO) for the Groww Nifty India Railways PSU Index Fund and Groww Nifty India Railways PSU ETF is now open for subscription and will close on January 30. These schemes will be compared to the Nifty India Railways PSU Index–TRI and will be handled by Abhishek Jain.
Groww Nifty India Railways PSU Index Fund aims to reduce tracking mistakes by adjusting its portfolio regularly. This includes updating the stock weights in the index and considering any new investments or withdrawals from the scheme.
Groww Nifty India Railways PSU ETF will invest in a mix of stocks that make up the Nifty India Railways PSU Index and maintain similar weight proportions. The fund will aim to keep the difference between its performance and the index as low as possible by adjusting the portfolio regularly. This includes updating stock weights based on changes in the index and managing new investments or withdrawals in the scheme.
These funds are suitable for those investors who are looking for long-term capital appreciation and want to invest in the equity and equity-related instruments of the Nifty India Railways PSU Index, as per the mentioned scheme details.
Groww Nifty India Railways PSU Index Fund will invest 95-100% in equity and equity-related securities of the companies that are part of the Nifty India Railways PSU Index and 0-5% in debt and money market instruments, or debt-based funds. On the other side, Groww Nifty India Railways PSU ETF will invest 95-100% of its money in the companies that are part of the Nifty India Railways PSU Index and will also invest 0-5% in safer options like money market instruments, debt securities, or units of debt/liquid scheme of domestic mutual funds.
Varun Gupta, CEO, of Groww Mutual Fund, said, “Indian Railways are crucial to India’s economic and infrastructure growth. It connects different communities and helps businesses run smoothly across the country. The Groww Nifty India Railways PSU ETF is a better opportunity for investors to be involved with a sector that is important to the country’s infrastructure and a reflection of its economic growth. This launch underscores our commitment to creating opportunities aligned with India’s growth story.”
With the budget coming up and the government focusing on this sector, most of the investors may rush to invest in these funds. However, experts believe that there are funds based on broader themes, so it’s important to think about whether you need something new in your portfolio.
Experts suggest that when there are too many NFOs in the market, it is best to be careful and focus on the basics.
