Groww Mutual Fund NFO:Groww Mutual Fund has launched new exchange traded funds (ETFs) and funds of funds (FoF) for the defense sector. Subscription for these new fund offers (NFOs) introduced under the name Groww Nifty India Defence ETF and Groww Nifty India Defence ETF FoF is open from 23 September 2024 to 4 October 2024. The allotment date of units under the NFO has been kept as 11 October 2024. This fund has been brought with the intention of giving investors an opportunity to invest in India’s growing defense sector.
Important information about NFO
The objective of Grow Nifty India Defence ETF is to achieve capital growth in the long term. This ETF will track the Nifty India Defence Index. Obviously, the money raised through this NFO will be used to invest in securities included in this index.
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Asset Allocation Strategy
Through Grow Nifty India Defense ETF, investors will get an opportunity to invest in companies that are related to the country’s defense sector. Up to 95-100% of this fund will be invested in shares of Nifty India Defense Index, while the remaining 0-5% of the funds will be allocated in money market instruments and debt securities.
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Highlights of NFO
Minimum investment: Rs 500
– Minimum monthly SIP investment: Rs 100
– Exit Load: 1% on redemption within 30 days, No exit load after 30 days.
– Allotment date: 11 October 2024
– Fund Manager: Abhishek Jain
– Riskometer : Very High
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Why is investing in the defense sector beneficial?
The government is making huge investments and modernization efforts in the Indian defense sector. This sector is constantly growing due to the participation of the private sector and the changing geo-political conditions at the global level. In such a situation, this ETF gives investors a golden opportunity to invest in this important industry of India.
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For whom is this scheme right
This ETF can be the right choice for investors who want to share in the Indian defense sector along with capital growth in the long term. This fund is primarily designed for investors who want to achieve capital growth through long-term investment in the defense sector. However, before deciding to invest, investors have to keep in mind that this fund will invest in the shares of companies of a particular sector and sectoral funds are considered to be very risky. This is the reason why it has been placed in the Very High category on the riskometer.
(Disclaimer: The purpose of this article is only to provide information about the scheme, not to recommend investment. The past returns of a mutual fund cannot be considered a guarantee of similar performance in the future. Take any investment decision only after consulting your investment advisor.)
