Groww Nifty India Railways PSU Index Fund NFO

Groww Nifty India Railways PSU Index Fund: Overview

Groww Mutual Fund introduces India’s first Railway PSU funds- Groww Nifty India Railways PSU Index Fund and Groww Nifty India Railways PSU ETF. The subscription window is open from 16 January 2025 to 30 January 2025. 

 

New NFO Details

Groww AMC has set its New Fund Offer price at Rs.500 and in multiples of Rs.1 thereafter. It is a scheme that uncategorical lists the Nifty India Railways PSU Index-TRI, which takes the same index for its benchmark. It is an ETF that provides investors exposure to Indian Railways PSU. There is no exit load. 

The launch comes against a larger backdrop of transformation in those railways, backed by a capital expenditure of Rs.2.52 trillion for FY 2024-25. The network of railways extends over 68,584 km, with more than 7,325 stations. Close to 6.7 billion passengers get transported each year, with the railways carrying 27% of the freight in India. Portfolio characteristics tilt heavily toward mid-cap stocks, holding a weightage of 54.61% which suggests a long-term growth potential. 

 

Fund Objective

By investing in securities of Nifty India Railways PSU Index in their proportion/weightage, the scheme aims at long-term capital growth, intending to provide returns, before expenses, that will track the total return of the Nifty India Railways PSU Index subject to monitoring errors. 

For more information about this new NFO Mutual Fund keep reading.

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Fund Overview

 

Taxation

 

Railway PSU Index 

Scheme Plan: 

Groww Nifty India Railways PSU Index Fund-Direct

Groww Nifty India Railways PSU Index Fund-Regular

 

How to Invest in the Scheme After the Closure of the NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on or before 13 Feb 2025, when the Scheme will reopen; 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 and search for “Groww Nifty India Railways PSU Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

 

Peers of Groww Nifty India Railways PSU Index Fund

This is the first scheme in this Index hence no peers are available yet.

 

Risk Factors in Such Funds

• Because the scheme invests mostly in equity and equity-related instruments, it will be susceptible to changes in prices resulting from various factors, including economic conditions, interest rates, and geopolitical events.

• Tracking Error Risk: Tracking errors, which result from various factors, could lead to deviations in the performance of the scheme against the benchmark index, particularly from a corporate action, cash holdings, or index rebalancing.

• Liquidity Risk: Low liquidity in particular security renders trading in such security either difficult or impossible, and this can affect performance.

• Regulatory Risk: Changes in applicable regulations or policies can affect how the fund operates, invests, and returns. Compliance with SEBI and similar guidelines is essential for continuing operation.
  
  

Past Performance of Railways PSU Index Funds

No past performance is available in this Index fund.

Groww Nifty India Railways PSU Index Fund-Fund Managers

Mr. Abhishek Jain.

Conclusion

The Groww Nifty India Railways PSU Fund provides a unique opportunity to invest in India's future railways. This scheme will have no exit load and a low minimum investment of Rs.500, designed for long-term growth. As an open-ended high-risk equity fund, investors must weigh their risk appetite carefully. Such an innovative fund can be an interesting element in a diversified portfolio. 

 

Disclaimer: Not a buy or sell recommendation. No investment advice is given. Future returns are not guaranteed by past returns. This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.