TestCloud
Prep • Practice • Perform
Log In

Groww Asset Management introduces India's first Groww Nifty India Railways PSU ETF.

Banking & Finance | Dated: 13 Jan 2025

Groww Mutual Fund, an Asset Management Company, has launched two new funds: the Groww Nifty India Railways PSU Index Fund and the Groww Nifty India Railways PSU ETF. Both are passive funds that track the Nifty India Railways PSU Index, which focuses on public sector companies in the railway sector.

🎯 Key Highlights:

  • - The Groww Nifty India Railways PSU ETF will be the first of its kind in India. The New Fund Offer (NFO) for this ETF will be available from January 16 to January 30, 2025. The scheme will re-open for investments on or before February 13, 2025.
  • - Both funds aim to provide long-term capital growth by investing in the stocks and related instruments of the companies included in the Nifty India Railways PSU Index.
  • - The Groww Nifty India Railways PSU ETF is an open-ended fund that tracks the Nifty India Railways PSU Index - TRI (Total Return Index), adhering to SEBI's rules and regulations for compliance with the latest standards. The fund does not impose an exit load, and investors can start with a minimum investment of Rs. 500, with increments in multiples of Rs. 1.

💡 Other Important Facts:

  • (i) The fund's asset allocation involves 95-100% in Nifty India Railways PSU Index stocks and 0-5% in money market or debt instruments. Its strategy is to closely replicate the index while maintaining minimal tracking error, ensuring efficient performance aligned with its benchmark.
  • (ii) The Groww Nifty India Railways PSU Index Fund has an exit load of 1% for redemptions within 30 days and none thereafter. Investors can start a SIP with a minimum of Rs. 100. The fund allocates 95-100% to Nifty India Railways PSU Index stocks and 0-5% to debt instruments or ETFs, aiming to minimize tracking error through regular portfolio rebalancing.
  • (iii) The Nifty India Railways PSU Index has shown strong performance, even outperforming the Nifty 500 Index, which highlights the growth potential of this sector.

📚 Test Your Knowledge:

Which company recently introduced India's first Groww Nifty India Railways PSU ETF?

Correct Answer: Groww Asset Management

🚀 Quick Recap:

About Groww Asset Management Limited

  • CEO : Varun Gupta
  • Headquarter : Mumbai