Groww Mutual Fund launches Railway PSU based 2 passive funds

Groww Mutual Fund has launched two passive funds based on Railways PSU: the Groww Nifty India Railways PSU Index Fund and Groww Nifty India Railways PSU ETF.

The New Fund Offer (NFO) will open for subscription on January 16 and close on January 30. The scheme will reopen for continuous sale and repurchase on February 13.

The schemes will be benchmarked against the Nifty India Railways PSU Index – TRI and will be managed by Abhishek Jain.


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These schemes are suitable for investors seeking long-term capital appreciation and looking to invest in the equity and equity-related instruments of the Nifty India Railways PSU Index.

Groww Nifty India Railways PSU Index Fund

An exit load of 1% will be applicable if redeemed within 30 days from the date of allotment. If redeemed after 30 days from the date of allotment, the exit load will be nil. The minimum amount for SIP facility will be Rs 100, and in multiples of Re 1 thereafter.

The scheme will allocate 95-100% to equity and equity-related securities of companies constituting the underlying Nifty India Railways PSU Index, and 0-5% to debt and money market instruments, units of debt schemes, or debt ETFs.

The investment strategy will focus on minimizing tracking error through portfolio rebalancing, considering changes in stock weights within the index and the incremental collections/redemptions from the scheme.

Groww Nifty India Railways PSU ETF

The exit load is nil. The minimum investment amount is Rs 500, and in multiples of Re 1 thereafter. Units will be allotted in whole figures, and any balance amount will be refunded, even if it falls below the minimum investment amount.

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The scheme will allocate 95-100% in constituents of the Nifty India Railways PSU Index and 0-5% in money market instruments, debt securities, or units of debt/liquid schemes of domestic mutual funds.

The investment strategy of the scheme will involve investing in a basket of securities forming part of the Nifty India Railways PSU Index in similar weight proportions. The strategy will focus on reducing tracking error through regular portfolio rebalancing, considering changes in stock weights within the Index and the incremental collections/redemptions in the scheme.

"Indian Railways is integral to India’s infrastructure and economic progress, connecting communities and powering commerce across the country. The Groww Nifty India Railways PSU ETF is an opportunity for investors to engage with a sector that is pivotal to the nation’s infrastructure and reflective of its economic momentum. This launch underscores our commitment to creating opportunities aligned with India’s growth story," said Varun Gupta, CEO, Groww Mutual Fund.