Groww Nifty EV & New Age Automotive ETF NFO: Review & NAV

Introduction

New Fund Offers (NFOs) provide investors with a unique opportunity to get in early on exciting new mutual funds. With wide investment portfolios, NFOs can provide financial growth to investors. Different Mutual Fund schemes have different investing portfolios that offer different returns and carry different level of Risks.

So, we're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'Groww Nifty EV & New Age Automotive ETF'.

This article will describe what is included in the Fund program and how it works.

 

Everything You Need To Know About Groww Nifty EV & New Age Automotive ETF - NFO

Groww Nifty EV & New Age Automotive ETF by Groww Mutual Fund under its AMC Groww Asset Management Limited is an open-ended scheme that replicates and tracks the Nifty EV and New Age Automotive Index-TRI. The investment window is open from July 22 to August 02, 2024, with a subscription price of Rs.500 and in multiples of Rs.1 with no Exit Load.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog and Click Here to Stay Updated with the Latest NFOs.

 

 

Groww Nifty EV & New Age Automotive ETF-NFO Overview

The scheme is suitable for investors who want to achieve capital appreciation over a long time and invest in equity and equity-related instruments of the Nifty EV & New Age Automotive Index. The Scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest 95-100% of its units in Securities listed in the Nifty EV and New Age Automotive Index, 0-5% in Money Market instruments/ debt securities, instruments, and/or units of debt/liquid Schemes of domestic Mutual Funds.

 

Fund Overview

The minimum subscription amount is set at Rs.500 and in multiples of Rs.1 thereof.

Start Date	22 July 2024
End Date	02 August 2024
Allotment Date / Subscription Date	Min period of 3 days but not more than 15 days after the closure date of the NFO.
VRO Rating	-
Expense Ratio	NA
Exit Load	Nil
AUM	724.37 Cr (as of Jan 2024)
Lock-In	NA
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty EV and New Age Automotive Index - Total Return Index
Min. Investment	Rs.500
Risk	Very High
Short-Term Capital Gains (STCG)	For less than 3 years, as per Tax Slab
Long-Term Capital Gains (LTCG)	For more than 3 years, 20% is applicable.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 15 business days from the date of allotment; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account or directly with the AMC and search for “Groww Nifty EV & New Age Automotive ETF”.

 

The Objective of The Fund

The Scheme intends to achieve capital appreciation over the long term by investing in securities of the Nifty EV & New Age Automotive Index in an equal proportion/weightage to offer returns before expenses that follow the total return of the Nifty EV & New Age Automotive Index, subject to tracking mistakes. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Net Assets) Of The Scheme's Portfolio Will Be As Follows:

Types Of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)
Securities listed on the Nifty EV and New Age Automotive Index	95	100
Money market instruments, debt securities, and debt/liquid units in domestic mutual fund schemes.	0	5

 

Peers of Groww Nifty EV & New Age Automotive ETF

No peer information is available in its SID.

Also, Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

• The units' NAV is closely connected to the value of the benchmark index's constituent equities. The scheme's NAV may fluctuate due to stock market movements. The scheme's NAV may fluctuate due to changes in interest rates, macroeconomic and political developments, or market downturns over time.

• The scheme aims to invest at least 95% of net assets in securities from the Nifty EV & New Age Automotive Index-TRI. Any changes to the index may necessitate liquidation or acquisition of stocks at current market prices, regardless of their valuation. This may not always benefit unitholders.

• Investors should be aware that this open-ended scheme requires them to acquire or sell units on listed stock exchanges at market prices, subject to exchange rules and regulations.

• Concentration risk occurs when a Mutual Fund Scheme invests solely in a specific sector per mandate. If a sector underperforms, the portfolio value will decrease, and the Investment Manager will be unable to diversify into another sector.

 

Past Performance Of  Index / Debt / ETF Funds

Index / ETF Funds	NAV (Rs.)	Annualised Return	Return/Risk
Navi Nifty Bank Index Fund - Direct Plan-Growth	13.48	18.86%	Very High Risk
Motilal Oswal S&P 500 Index Fund - Direct Plan-Growth	20.91	27.92%	Very High Risk
Invesco India Nifty G-Sec Sep 2032 Index Fund - Direct Plan-Growth	1107.65	7.58%	Moderate Risk

 

 

Groww Nifty EV & New Age Automotive ETF NFO-Who Can Invest?

This Fund is ideal for those who want to achieve capital appreciation over a long time and invest in equity and equity-related instruments of the Nifty EV & New Age Automotive Index.

 

Groww Nifty EV & New Age Automotive ETF NFO - Growth Fund Managers

• Mr. Abhishek Jain
  
  

Conclusion

This Scheme is for investors who desire to attain capital appreciation over time and seek to invest in equities and Equity-related instruments covered by the Nifty EV & New Age Automotive Index. The scheme has no past performance record. Always assess your Financial Goals, Risk tolerance, time horizon, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.