NFO Alert: Groww Mutual Fund launches defence-based ETF and FoF

Groww Mutual Fund has launched Groww Nifty India Defence ETF and Groww Nifty India Defence ETF FOF. The new fund offer or NFO is open for subscription and will close on October 4. The scheme will reopen for continuous sale and repurchase on October 18.

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The schemes will be benchmarked against Nifty India Defence Index – Total Return Index. Both the schemes will be managed by Abhishek Jain.

Groww Nifty India Defence ETF

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

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

The minimum investment 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. The exit load is nil.The scheme is suitable for investors who are seeking long-term capital appreciation and want investment in equity and equity related instruments of the Nifty India Defence Index.

Groww Nifty India Defence ETF FoF

The investment objective of the Scheme is to generate long term capital gains by investing in units of the Groww Nifty India Defence ETF.

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The scheme will be benchmarked against Nifty India Defence Index – Total Return Index. The scheme will be managed by Abhishek Jain. The scheme will allocate 95-100% in units of Groww Nifty India Defence ETF and 0-5% in debt and money market instruments / and units of debt/liquid schemes of domestic mutual funds.

An exit load of 1% is applicable, if redeemed within 30 days from the date of allotment: 1%, and If redeemed after 30 days from the date of allotment, the exit load is nil.

The minimum investment amount for lumpsum investment is Rs 500 and in multiples of Re 1 for purchases and of Re 0.01 for switches. For SIP, the minimum investment amount is Rs 1,200 (subject to a minimum of 12 SIP installments of Rs 100 each for monthly option and 4 SIP installments of Rs 300 for quarterly option).

The scheme is suitable for investors who are seeking investment predominantly in units of Groww Nifty India Defence ETF, long-term capital appreciation, and exposure to Defence companies.