Groww Mutual Fund Files Draft for Nifty 200 ETF with SEBI

Introduction

Groww Mutual Fund is introducing the Groww Nifty 200 ETF, an open-ended exchange-traded fund (ETF) that aims to track the performance of the Nifty 200 Index – Total Return Index (TRI). This ETF is designed to offer investors an opportunity to achieve long-term capital growth by investing in the companies that constitute the Nifty 200 index in similar proportions.

Key Information

Objective of the Scheme

The primary investment objective of the Groww Nifty 200 ETF is to provide long-term capital growth by investing in equity and equity-related instruments of companies in the Nifty 200 Index. The scheme aims to mirror the performance of the Nifty 200 Index before expenses, with minimal tracking error. However, there is no assurance or guarantee that the investment objective will be achieved​.

Category of the Scheme

The Groww Nifty 200 ETF falls under the category of Other Schemes – Exchange Traded Fund (ETF). It is an open-ended scheme that will be listed and traded on stock exchanges, enabling investors to buy and sell units during trading hours​.

Benchmark

The fund will track the Nifty 200 Index – Total Return Index (TRI) as its benchmark. This index represents the top 200 companies listed on the NSE, weighted by market capitalization, offering a diversified exposure to large-cap and mid-cap stocks​.

Fund Management

Who Manages the Fund?

The fund manager of the Groww Nifty 200 ETF is Mr. Abhishek Jain, who brings over 12 years of experience in the equity market. Prior to joining Groww, Mr. Jain worked with Edelweiss Tokio Life Insurance, Acko General Insurance, and Shriram Asset Management Co. Ltd. He currently manages other funds like the Groww Nifty Total Market Index Fund, Groww Nifty Small Cap Index 250 Index Fund, and Groww Nifty EV & New Age Auto ETF​.

Key Details

Liquidity

The units of the Groww Nifty 200 ETF will be listed on recognized stock exchanges like the NSE. Investors can subscribe and redeem units through the stock exchange or directly with the AMC, depending on the transaction size​.

Exit Load

There is no exit load for investors redeeming units from the fund, whether through the stock exchange or directly with the fund house​.

Minimum Application Amount

During the New Fund Offer (NFO), investors can subscribe with a minimum investment of Rs 500, with further investments to be made in multiples of Re 1.

Tracking Error

The scheme aims to maintain a low tracking error, with the goal of not exceeding 2% annually on a rolling 12-month basis. The AMC will make efforts to keep the tracking error as minimal as possible through regular portfolio rebalancing​.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.