Groww Mutual Fund launches two new defence-focused schemes - Complete details inside

Benchmarked against the Nifty India Defence Index - Total Return Index, both the schemes offer unique investment opportunities.

Groww Mutual Fund has introduced two new exchange-traded funds (ETFs) focused on the Indian defence sector. The Groww Nifty India Defense ETF and Groww Nifty India Defense ETF FOF aim to provide investors with exposure to the defence industry through a diversified portfolio.

Key Features of the New Schemes

1. Groww Nifty India Defence ETF

Scheme objective
The primary goal of Groww Nifty India Defence ETF is to generate long-term capital appreciation by investing in securities from the Nifty India Defence Index in the same proportion and weightage. The fund aims to replicate the performance of the index, minus expenses and is subject to tracking errors.

Allocation

• 95-100 per cent in the Nifty India Defence Index components.
• 0-5 per cent in money market instruments, debt securities, or units of liquid schemes.

Minimum investment
Rs 500, followed by investments in multiples of Re 1. Units will be allotted in whole figures, and the remaining balance refunded if necessary.

Exit Load
Nil, offering flexibility in withdrawals.

Investor suitability
Ideal for investors seeking long-term capital growth with exposure to equity and equity-related instruments in India’s growing defence sector.

2. Groww Nifty India Defence ETF Fund of Funds (FoF)

Scheme objective
This scheme is designed to generate long-term capital gains by investing primarily in units of the Groww Nifty India Defence ETF, providing indirect exposure to the Nifty India Defence Index.

Allocation

• 95-100 per cent in units of the Groww Nifty India Defence ETF.
• 0-5 per cent in debt and money market instruments or units of debt/liquid schemes.

Exit Load

• 1 per cent if redeemed within 30 days from the date of allotment.
• Nil if redeemed after 30 days.

Minimum investment

• Rs 500 for lump sum investments, followed by multiples of ₹1 for purchases or ₹0.01 for switches.
• For SIP: Rs 1,200 with at least 12 monthly instalments of Rs 100 each or 4 quarterly instalments of Rs 300.

Shou you invest?
Both schemes provide investors with access to the booming Indian defence sector, which is poised for growth given its strategic importance. With low investment thresholds and benchmarked to the Nifty India Defence Index, they offer a unique opportunity for long-term capital growth at a lower cost.

Conclusion
These new offerings from Groww Mutual Fund provide diversified exposure to India’s defence sector, making them a strong option for investors seeking to capitalise on the country’s rising defence capabilities. With easy entry points and no exit load for the ETF, they present an accessible way for retail investors to participate in this growing market.

Disclaimer: The article is for informational purposes only and not investment advice.