NFO Monitor: Groww Mutual Fund launches two passive funds

Groww Mutual Fund has announced the launch of two passive funds — Groww Nifty 200 ETF and Groww Nifty 200 ETF FOF. Groww Nifty 200 ETF is an open‐ended scheme tracking the Nifty 200 Index - TRI and Groww Nifty 200 ETF FOF is an open-ended fund of fund scheme investing in units of Groww Nifty 200 ETF.

The new fund offer or NFO of these two passive funds will open for subscription on February 7 and close on February 21. The scheme will reopen for continuous sale and repurchase on or before March 10.

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The schemes will be benchmarked against Nifty 200 Index TRI and managed by Abhishek Jain.

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

Groww Nifty 200 ETF

The investment objective is to generate long-term capital growth by investing in securities of the Nifty 200 Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of Nifty 200 Index, subject to tracking errors.

The exit load is nil. The scheme will allocate 95-100% in constituents of Nifty 200 Index and 0-5% in money market instruments / debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.

The Groww Nifty 200 ETF will be managed passively with investments in stocks in the same proportion as in the Nifty 200 Index. The investment strategy of the scheme will be to invest in a basket of securities forming part of Nifty 200 Index in similar weight proportion.

The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions in the scheme.

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Groww Nifty 200 ETF FOF

The investment objective of the scheme is to generate long-term capital growth by investing in units of the Groww Nifty 200 ETF.

The minimum instalment amount for monthly SIP is Rs 100 and in multiples of Re 1 thereafter with a minimum of 12 installments. For quarterly SIP, the minimum amount is Rs 300 and in multiples of Re 1 thereafter

An exit load of 1% will be applicable if redeemed within 30 days from the date of allotment. The exit will be nil, if redeemed after 30 days from the date of allotment.

The scheme will allocate 95-100% in units of Groww Nifty 200 ETF and 0-5% in debt and money market instruments / and units of debt/liquid schemes of domestic mutual funds.