Groww Launches Nifty India Defence ETF & FOF: Tapping into India's Defence Growth
Sep 24, 2024
Groww Mutual Fund has launched Groww Nifty India Defence ETF, It is an open‐ended scheme tracking the Nifty India Defence Index - TRI and Groww Nifty India Defence ETF FOF, it is an open ended equity scheme scheme investing in units of Groww Nifty India Defence ETF.
India's defence sector is a crucial component of its strategic framework, supporting national security and fostering economic growth through manufacturing, research, and innovation. Investing in the Nifty India Defence Index provides exposure to the key players driving growth in this sector.
The index tracks a basket of defence and aerospace companies involved in manufacturing, research, and logistics. With government initiatives fostering self-reliance and increasing capital expenditure in defence, the companies in this index stand to benefit from long-term growth opportunities.
[Read: 6 Equity Mutual Funds to Benefit from India’s Defence Sector]
The investment objective of these schemes is to generate long-term capital growth by investing in securities of the Nifty India Defence Index 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 Groww Nifty India Defence ETF FOF aims to generate long term capital gains by investing in units of the Groww Nifty India Defence ETF.
However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
Under normal circumstances, Groww Nifty India Defence ETF will hold an allocation of 95% to 100% in constituents of Nifty India Defence Index and 0% to 5% in Money market instruments / debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual Funds
Under normal circumstances, Groww Nifty India Defence ETF FOF will hold an allocation of 95% to 100% in Units of Groww Nifty India Defence ETF and 0% to 5% in Debt & Money Market Instruments / and Units of debt/liquid schemes of domestic Mutual Funds.
About Nifty India Defence – TRI
The Nifty India Defence Total Return Index (TRI) is designed to track the performance of companies involved in the defence and aerospace sectors in India. The Index comprises a mix of public sector undertakings (PSUs) and private companies that play a vital role in defence production and services.
(Source: NSE – Nifty India Defence Index)
Key holdings in the Nifty India Defence TRI include Hindustan Aeronautics Limited (HAL), a leading aerospace and defence company that produces aircraft and helicopters for the Indian armed forces. Another prominent name is Bharat Electronics Limited (BEL), which manufactures advanced electronic products and systems for defence. Solar Industries India Ltd, which specializes in manufacturing explosives and propulsion systems for the defence sector, as well as for mining, infrastructure, and construction.
Groww Nifty India Defence ETF will be managed passively with investments in stocks in the same proportion as in the Nifty India Defence Index. The investment strategy of the Scheme will be to invest in a basket of securities forming part of Nifty India Defence Index in similar weight proportion.
The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements
Groww Nifty India Defence ETF FOF will invest in units of Groww Nifty India Defence ETF. Investments made from the net assets of the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI (MF) Regulations.
Both the schemes will be benchmarked against the Nifty India Defence - TRI
Both the schemes will be managed by Mr Abhishek Jain.
Groww Nifty India Defence ETF & FOF are open for subscription from September 23, 2024 to October 04, 2024. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment.
The minimum subscription amount is Rs 500/- and in multiples of Re. 1 thereafter.
Groww Nifty India Defence ETF currently does not offer any Plans/Options for investment.
Groww Nifty India Defence ETF FOF offers Direct Plan and Regular Plan. Under each plan the fund offers Growth and Income Distribution cum Capital Withdrawal (IDCW) Option.