#GrowwMutualFund #NiftyCapitalMarkets #ETFLAUNCH #FundofFund #PassiveInvesting #NFO #FinancialInfrastructure #IndiaFinance #MarketGrowth #InvestmentOpportunity #StockMarketIndia
Chandigarh: Groww Mutual Fund, a fast-growing player in the Indian asset management space, has announced the launch of two new passive investment schemes: the Groww Nifty Capital Markets ETF and the Groww Nifty Capital Markets ETF Fund of Fund (FoF). The New Fund Offer (NFO) period for both schemes is currently open, running from November 14 to November 28, 2025.
This dual launch marks a strategic move by Groww to provide investors with focused and efficient exposure to the complex yet highly essential companies operating within India’s financial infrastructure. Both schemes share the objective of tracking the performance of the Nifty Capital Markets Index – TRI, offering a diversified yet targeted way to participate in the growth of the nation’s financial market backbone.
Understanding the Investment Focus
The underlying benchmark, the Nifty Capital Markets Index, is meticulously constructed to represent businesses that are integral to the functioning and expansion of India’s capital markets. According to Groww, the index comprises entities involved in critical financial intermediation services, including stockbroking, asset management, and core market infrastructure services.
A key draw of this thematic passive fund is its direct exposure to major components of the financial ecosystem. This includes:
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Exchanges and Depositories: The core infrastructure providers that facilitate trading and holding of securities (e.g., BSE, CDSL).
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Stockbroking Firms: Listed companies that enable retail and institutional trading activities.
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Asset Management Companies (AMCs): Firms managing mutual funds and other collective investment schemes (e.g., Nippon Life India AMC, HDFC AMC).
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Registrars and Share Transfer Agents: Entities essential for record-keeping and processing security transfers.
The launch is timely, coinciding with a period of significant expansion in India’s capital markets. This growth is being fueled by a confluence of factors, including rapid digital infrastructure development, progressive regulatory reforms, and a substantial increase in retail investor participation, often referred to as the ‘financialization of savings.‘
The Groww Nifty Capital Markets ETF
The ETF scheme is the foundational product, designed to replicate the Nifty Capital Markets Index – TRI as closely as possible. It will achieve this by investing in all the constituent stocks of the index in the same weight and proportion. A primary goal of the fund management team will be to minimize tracking error—the difference between the scheme’s returns and the index returns—a standard metric for evaluating passive funds. Groww intends to apply its proprietary rebalancing technology across its passive suite to help in the pursuit of a lower tracking error.
The Groww Nifty Capital Markets ETF Fund of Fund (FoF)
The FoF is designed for investors who prefer the simplicity and convenience of transacting through a traditional mutual fund structure. The FoF’s mandate is to predominantly invest its corpus in units of the underlying Groww Nifty Capital Markets ETF. This structure makes it accessible through Systematic Investment Plans (SIPs) and Lump-Sum investments without the need for a demat account, which is typically required to purchase units of an ETF directly on the stock exchange.
Key Details and Investor Benefits
Both schemes are positioned as simple, low-cost investment avenues into a high-growth sector. Key features include:
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Benchmark: Nifty Capital Markets Index – TRI (Total Return Index), which accounts for dividend income reinvestment, offering a comprehensive view of performance.
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Minimum Investment: A low threshold of ₹500 for the NFO, making it accessible to a wide base of retail investors.
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Exit Load: Both the ETF and the FoF carry no exit load, providing investors with full liquidity and flexibility to redeem their units at any time without penalty.
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Management Team: The schemes will be jointly managed by a team of experienced professionals, including Nikhil Satam, Aakash Chauhan, and Shashi Kumar.
Growth Outlook and Context
Groww highlighted that the Nifty Capital Markets Index has historically demonstrated an ability to outperform broader market benchmarks over various short- to medium-term investment horizons. While the fund house included the mandatory caveat that past index performance does not guarantee future returns, the underlying industry tailwinds are compelling.
The overall Indian mutual fund industry’s Assets Under Management (AUM) reached a significant milestone of nearly ₹80 lakh crore in October 2025. This massive figure underscores the long-term growth potential in the industry, which remains robust relative to global peers. By launching schemes that directly track the enablers of this growth—the capital markets companies themselves—Groww is betting on the continued financial deepening of the Indian economy.
In essence, these new passive products offer investors a strategic tool to capture the value creation driven by increased formalization of savings, rising financial literacy, and the digital revolution transforming how Indians interact with their money and investments.
#GrowwMutualFund #NiftyCapitalMarkets #ETFLAUNCH #FundofFund #PassiveInvesting #NFO #FinancialInfrastructure #IndiaFinance #MarketGrowth #InvestmentOpportunity #StockMarketIndia
