Groww Mutual Fund Launches Grow Nifty Non-Cyclical Consumer Index Fund

May 09, 2024


Groww Mutual Fund whose philosophy is built on the pillars of simplicity, transparency, consistent wealth creation, and customer centricity, has come up with a new index fund, namely the Groww Nifty Non-Cyclical Consumer Index Fund.

This is an open-ended passively managed equity mutual fund scheme, tracking the Nifty Non-Cyclical Consumer Index - TRI. This index comprises 30 stocks that broadly represent the non-cyclical consumer theme with basic industries such as consumer goods, consumer services, telecom, media & entertainment, publications, textiles and so on.

Table 1: Top constituents of the Nifty Non-Cyclical Consumer Index

(Source: NSE Indexogram Factsheet as of April 2024)

For the Nifty Non-Cyclical Consumer Index, the largest 30 stocks from eligible basic industries are chosen based on their 6-month average free-float market capitalization as on the cutoff dates at the end of January and July. The weight of the stocks in the index is based on their free-float market capitalization with the weight of a stock in the index capped at 10%.

The Groww Nifty Non-Cyclical Consumer Index Fund, therefore, provides exposure to equities & equity-related securities of companies engaged in or expected to benefit from consumption and consumption-related activities. The Scheme will aim to invest in stocks in the same proportion as its underlying index and reduce the tracking error to the least possible through timely portfolio rebalancing (considering the changes in the weights of the stocks, plus the incremental collections and redemptions).

Further, the Scheme may take an exposure to equity derivatives of constituents of the underlying index for a short duration when securities of the Index are unavailable, insufficient or for rebalancing at the time of change in the Index or in case of corporate actions or for hedging purposes, as permitted by SEBI/RBI.

A small portion, up to 5% of its net assets may be allocated in debt and money market instruments. Money Market instruments include commercial papers, commercial bills, treasury bills, Tri-party repo, Government securities having an unexpired maturity of up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India (RBI) from time to time. The Scheme may also invest in Liquid & Overnight scheme of the Groww Mutual Fund or any other mutual fund.

Thus, the investment objective of the Scheme is to generate long term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of the Nifty Non-Cyclical Consumer Index, subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.

Table 2: Performance of Nifty Non-Cyclical Consumer Index v/s Nifty 50

NSE Indices Data as of March 28, 2024
Past performance may or may not be sustained in future and is not a guarantee of any future returns. The above is the performance of the index and does not in any manner indicate the performance of any individual scheme of the mutual fund. Please consult your financial advisor before investing.
(Source: Product Brochure)

Groww Nifty Non-Cyclical Consumer Index Fund will be managed by Mr. Abhishek Jain, who is an Arts graduate (BA), and a Chartered Accountant (CA) with 12 years of experience in the equity market. Before joining Groww Mutual Fund, he was associated with Edelweiss Tokio Life Insurance as a Senior Dealer. He has also worked in Acko General Insurance and Shriram Asset Management Company Ltd.

The scheme is available for subscription during the New Fund Offer period from May 2, 2024, to May 16, 2024, and has both Regular Plan and Direct Plan options for investment. The minimum investment amount is Rs 500/- and in multiples of Re 1 thereafter. In the case of the Systematic Investment Plan (SIP) mode, the minimum investment is Rs 1200/- (subject to a minimum of 12 SIP instalments of Rs. 100/- each for monthly option and 4 SIP instalments of Rs 300/- for quarterly option).

As an investor, if you are looking to have exposure to non-cyclical companies in India, the Groww Nifty Non-Cyclical Consumer Index Fund is an option. But make sure you have a very high-risk appetite and an investment horizon of around 5 to 7 years.

To know more about the Groww Nifty Non-Cyclical Consumer Index Fund download and read the Scheme Information Document and Key Information Memorandum.

Happy Investing!