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Chandigarh: In a move that could energize thematic investing in India, Groww Mutual Fund has announced the launch of two innovative passive investment schemes focused on India’s growing power sector: the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF). These are India’s first-ever ETFs and mutual funds exclusively tracking the BSE Power Index – Total Return Index (TRI).
The New Fund Offer (NFO) for both schemes opens on July 18 and will close on August 1, 2025. The minimum investment is just ₹500, and there’s no exit load, making it an accessible and flexible option for retail investors.
⚡ Why Power, Why Now?
India’s electricity sector is undergoing a transformation. From grappling with energy shortages just a decade ago, the country has now become power surplus, thanks to a combination of policy reforms, infrastructure expansion, and a massive push towards renewable energy.
According to Groww Mutual Fund, India’s power consumption has increased nearly five-fold since 2000, yet per capita consumption still remains below the global average. This suggests ample room for growth, especially as the economy continues to expand.
From electric vehicles (EVs) to data centers, smart cities, and green hydrogen initiatives, the demand for electricity is set to rise sharply in the coming decades. Government initiatives like the National Electricity Plan, investments in smart grids, and the aggressive rollout of solar and wind energy projects are all expected to add further momentum to the sector.
📈 About the Schemes
Groww BSE Power ETF
This is a passive exchange-traded fund that directly tracks and invests in the companies comprising the BSE Power Index. These include a mix of companies involved in power generation, transmission, distribution, integrated utilities, and power equipment manufacturing.
Groww BSE Power ETF Fund of Fund (FoF)
For those who prefer a traditional mutual fund format (without requiring a demat account), the FoF version provides exposure to the same theme by investing in the ETF itself.
These schemes aim to offer long-term capital appreciation by mirroring the performance of the BSE Power TRI, which adjusts for dividends as well—providing a more comprehensive picture of returns than price-only indices.
🧠 Smart, Low-Cost Investing
One of the highlights of these schemes is the use of Groww’s proprietary 10SPEARTech, a technology that helps keep tracking error low, ensuring that the fund closely follows the benchmark index with minimal deviation.
The expense ratio is low, in line with Groww’s passive fund philosophy, allowing investors to potentially earn better net returns compared to actively managed sectoral funds.
👥 Meet the Fund Managers
The schemes are managed by a trio of experienced professionals:
Nikhil Satam
Aakash Chauhan
Shashi Kumar
They bring with them strong experience in managing index and sectoral strategies, adding confidence to investors looking at this thematic opportunity.
💬 What Makes This a Good Opportunity?
If you’re bullish on India’s energy transition, infrastructure development, and the rapid digitalization of the economy, the power sector could be a powerful long-term theme. Here’s why you might consider investing:
Strong policy support and government spending
Rising demand from EVs, manufacturing, and urban growth
Attractive valuations of power companies
Exposure to both conventional and renewable energy
Unlike stock-picking, an ETF or FoF structure spreads the risk across 14 established companies in the BSE Power Index, offering diversified exposure with less effort.
✅ Who Should Consider This?
This fund may suit:
Long-term investors looking for sectoral growth themes
Passive investors wanting low-cost index exposure
Beginners or SIP investors looking for a ₹500 entry point
Those seeking a green energy or infrastructure angle
📌 Key Facts at a Glance
Feature Details
NFO Open July 18, 2025
NFO Close August 1, 2025
Minimum Investment ₹500
Exit Load None
Benchmark BSE Power Index – TRI
Investment Type ETF and Fund of Fund
Fund Managers Nikhil Satam, Aakash Chauhan, Shashi Kumar
⚠️ A Note of Caution
As with any sectoral investment, returns may be cyclical and influenced by regulatory changes, input costs, and project delays. It’s advisable to invest with a long-term view and diversify across other themes or asset classes.
🔚 Final Thoughts
Groww’s power-focused ETF and FoF provide a convenient, low-cost, and diversified way to participate in India’s electrifying energy growth story. For investors keen on thematic investing aligned with India’s future, this could be a smart way to plug into potential.
📢 #InvestSmart #PowerETF #GrowwMutualFund #NFOAlert #PassiveInvesting #SectoralFunds #IndiaEnergy #BSEPowerIndex #ElectricIndia #GreenEnergy #ETFIndia #FoF #MutualFunds #EnergyTransition #EVGrowth
