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Introducing the Groww Nifty Total Market Index Fund

Are you ready to take your investment game to the next level?

Groww Mutual Fund, formerly known as Indiabulls Mutual Fund, is set to bring the newest index fund to the Indian markets. SEBI (Securities and Exchange Board of India) has granted approval for the launch of Groww Nifty Total Market Index Fund, the fund’s first foray into index funds.

This scheme, like other index funds, follows a passive style of investing. To know more about the fund details, you can refer to the Scheme Information Document (SID).

If you want to invest in Groww Nifty Total Market Index Fund, please note the New Fund Offering (NFO) window will remain open from October 3-17, 2023. 

Understanding About Groww Nifty Total Market Index Fund

Groww Nifty Total Market Index Fund is an flexible scheme designed to replicate and track the Nifty Total Market Index. It’s the first of its kind in India. This fund offers a unique chance to diversify your portfolio and gain access to a broad range of company stocks over different sectors.

Just to clarify, there are myriad other index funds in the Indian mutual fund market, but this is the first one to track the Nifty Total Market Index.

Groww Nifty Total Market Index Fund Key Features 

Let’s delve into the standout features of this innovative fund:

  • Broad Exposure: The fund aims to provide broader exposure to the market of Indian stock compared from any other index.
  • Portfolio Diversification: It provides investors with a chance to access a diverse portfolio of stocks through an investment.
  • Long-Term Growth: This fund is designed for long-term funds appreciation, making it an attractive option for investors.

Why Nifty Total Market Index Matters

The Nifty Total Market Index is a unique benchmark that spreads across various market capitalisations, including large-cap, mid-cap, small-cap and even micro-cap. It includes the top 750 companies by market cap. It includes all the components in the Nifty 500 and the Nifty Midcap 250.

This means, this index offers a much broader vision of the Indian market with stock contrasted to traditional indices like the Nifty 50 and the Sensex 30. Not only does it include companies of different sizes, but it is also sector-agnostic and provides a complete overview of the Indian stock market.

Allocation of Assets

As of September 6, 2023, Groww Nifty Total Market Index Fund allocates its assets over market caps as follows:

Large Market Cap72.03%
Small Market Cap16.11%
Mid Market Cap8.60%
Micro Market Cap3.39%

Please note that these percentages are for illustrative purposes only, and actual allocations may vary. Refer to the Scheme Information Document (SID) for detailed information.

Top 10 Holdings

Below table is shows the top 10 holdings of the Groww Nifty Total Market Index Fund.

Company’s NameWeightage (%)
HDFC Bank Ltd.8.52
Reliance Industries Ltd.5.92
ICICI Bank Ltd.4.87
Infosys Ltd.3.72
ITC Ltd.2.82
Tata Consultancy Services Ltd.2.50
Larsen & Toubro Ltd.2.37
Axis Bank Ltd.1.94
Kotak Mahindra Bank Ltd.1.88
Hindustan Unilever Ltd.1.63

Source: NSE (Data as of August 31, 2023)

Groww Nifty Total Market Index Fund vs. Nifty 50

For those who crave data-driven insights, let’s differentiate how the Nifty Total Market Index has performed against the Nifty 50 over various time frames:

TRI Index Returns

1 Year3 Years5 Years10 Years15 Years
Nifty 5015.90%21.81%13.74%14.4612.67
Nifty Total Market18.45%24.71%15.13%16.3313.79

Source: NSE (Data as of September 6, 2023)

Please note that this comparison is for only educational motive and should not be considered investment advice purpose. Past performance does not guarantee future results.

Scheme Details at a Glance

  • Name of the Scheme: Groww Nifty Total Market Index Fund
  • Minimum Application Amount: ₹1,000 (in multiples of ₹1/- for purchases and ₹0.01 for switches)
  • Exit Load: Nil
  • Fund Manager: Mr Anupam Tiwari
  • Investment Strategy: Passive
ParametersDetails
Name of the SchemeGroww Nifty Total Market Index Fund
Minimum Application Amount₹1,000 and in multiples of ₹1/- for purchases and of ₹0.01 for switches
Exit LoadNil
Fund ManagerMr. Anupam Tiwari
Investment StrategyPassive

Who Should Consider Investing?

Groww Nifty Total Market Index Fund is an ideal choice for

  • Investors need long-term fun appreciation
  • Those wondering to investing in India’s growth potential
  • Individuals interested in building a diversified market portfolio
  • Those who prefer passive investment schemes

However, it’s crucial to consulting with your adviser of finance before making any investment decisions to ensure they align with your financial goals and risk tolerance.

Know How You Can Invest

Invest in the Groww Nifty Total Market Index Fund You can following below channels:

  • Directly
  • Through digital platforms
  • Via individual mutual fund distributors

Conclusion

The much-anticipated New Fund Offer (NFO) for Groww Nifty Total Market Index Fund is scheduled to open on October 3, 2023, and will close on October 17, 2023. Don’t miss out on this opportunity to explore a diverse and innovative investment avenue.

Make sure to discuss with your financial adviser to determine if this scheme aligns with your investment objectives, risk management, and horizon.

FAQs

1. What is the minimum application amount for the scheme during NFO?

The minimum application amount is ₹1,000 and can be made in multiples of ₹1/- for purchases and ₹0.01 for switches.

2. Can I invest via a direct plan?

Yes, you can invest in both direct and regular plans of Groww Nifty Total Market Index Fund. However, it’s advisable to consult your financial adviser for informed decision-making.

3. What are passively managed funds?

Passive funds aim to closely track the performance of an underlying index. Returns are based on the index’s performance, subject to a tracking error.

4. What does NFO mean?

NFO stands for New Fund Offer, which is the initial offering of units of a mutual fund scheme to the public for subscription. It allows investors to invest in the units of the scheme at the face value during a specified offer period.

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