Publish Date:
Groww Mutual Fund introduces – Groww Nifty Total Market Index Fund
It is an open-ended scheme and India’s first mutual fund scheme replicating/tracking the Nifty Total Market Index.
Accordingly, the investment objective of the scheme is to achieve a return equivalent to the Nifty Total Market Index-TRI subject to tracking error. This index is diversified throughout the Indian market across sectors and market caps and aims to benefit from India’s economic growth.
However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.
Under normal circumstances, Groww Nifty Total Market Index Fund will hold an allocation of 95% to 100% of its assets in replication of securities covered by Nifty G-Sec July 2033 Index and 0% to 20% in Cash & Debt/Money Market instruments.
As per the Scheme Information Document, Groww Nifty Total Market Index Fund will be managed passively with investments in stocks in a proportion to the weights of these stocks in the Nifty Total Market Index.
The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions from the Scheme.
The designated Fund manager of the scheme will be responsible for taking the day-to-day investment decisions and will inter-alia be responsible for asset allocation, security selection and timing of investment decisions.
Groww Nifty Total Market Index Fund performance will be benchmarked against Nifty Total Market Index (Total Return Index)
The scheme will be managed by Mr Anupam Tiwari.
The NFO opens for subscription on October 03, 2023 and closes on October 17, 2023. The schemes will reopen for continuous sale and repurchase within 5 business days from date of allotment.
The fund's face value is Rs 10/- per unit. The minimum subscription amount is Rs 1,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal (IDCW) options.