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New Exchange-Traded Fund Launched
Groww Mutual Fund announced the launch of its new offering, the Groww Nifty PSE ETF, on Thursday, January 22, 2026. This open-ended exchange-traded fund (ETF) is structured to track the performance of the Nifty PSE Index – TRI. The New Fund Offer (NFO) period began on January 22, 2026, and will be open for subscriptions until February 5, 2026. Following the NFO, the scheme is expected to reopen for investments on or before February 19, 2026.
Investment Objective and Strategy
The Groww Nifty PSE ETF will invest in a portfolio of equity and equity-related instruments of companies that are constituents of the Nifty PSE Index. The primary objective is to deliver returns that closely align with the total returns of the index, subject to a minimal tracking error. To ensure liquidity and operational efficiency, the fund may also allocate a small portion of its assets to debt and money market instruments, in compliance with regulatory guidelines. The minimum investment amount for this ETF is ₹500, with no exit load applicable. The fund will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar.
Understanding the Nifty PSE Index
The Nifty PSE Index is designed to track the performance of listed public sector enterprises where the central or state governments hold a majority stake. The index comprises up to 20 companies selected from the Nifty 500 universe, based on their free-float market capitalization. These companies operate across key sectors including energy, banking and financial services, power, metals, infrastructure, utilities, and transportation. The index is reconstituted semi-annually to reflect market dynamics. As of January 21, 2026, the Nifty PSE index closed at 9,620.35, showing a P/E ratio of 12.18 and a dividend yield of 2.76%. The index has demonstrated substantial long-term growth, with 5-year returns reaching 232.42%. Similarly, the BSE PSU index, which tracks 57 public sector undertakings, reported a P/E of 11.7 and a 5-year CAGR of 27.6%.
Market Opportunity in Public Sector Enterprises
The launch of the Groww Nifty PSE ETF provides investors an avenue to participate in India's public sector economy. These enterprises often play a critical role in national development and benefit from government backing. The ETF's structure, allowing units to be bought and sold on stock exchanges during market hours, offers liquidity similar to individual stocks, supported by appointed market makers.
Comparative ETF Landscape
The Groww Nifty PSE ETF enters a segment that includes other ETFs focused on public sector undertakings. Notable among these are the CPSE ETF, Bharat 22 ETF, Nippon India ETF Nifty PSU Bank ETF, and Kotak Nifty PSU Bank ETF, each offering diversified exposure to government-owned entities. The Aditya Birla Sun Life Nifty PSE ETF is another comparable product in this space. These ETFs allow investors to gain exposure to a basket of PSE stocks, potentially offering diversification and capturing the performance of this specific market segment.