HUGE Opportunity! Groww Launches NEW Funds for India's Booming Capital Markets – Are YOU In?

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Groww Mutual Fund has introduced two new passive investment schemes designed to track the Nifty Capital Markets Index. The schemes, Groww Nifty Capital Markets ETF and Groww Nifty Capital Markets ETF Fund of Fund (FoF), are available during a New Fund Offer (NFO) period from November 14 to November 28.

The Groww Nifty Capital Markets ETF will invest in the constituents of the Nifty Capital Markets Index in similar proportions to mirror its performance. The FoF will primarily invest in this ETF. These products offer investors a way to gain exposure to India's capital markets infrastructure, including listed brokers, stock exchanges, depositories, registrars, and asset-management companies, which are crucial for financial intermediation.

Groww highlighted that the Nifty Capital Markets Index has historically outperformed broader benchmarks over shorter to medium terms, though past performance is not a guarantee of future returns. This launch is timely, coinciding with the rapid growth of India's capital markets, fueled by digital advancements, regulatory reforms, and increased retail investor participation. The Indian mutual fund industry's Assets Under Management (AUM) reached nearly ₹80 lakh crore by October 2025, indicating strong long-term growth potential.

Both new schemes have no exit load and a minimum investment requirement of ₹500. They will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar. Groww plans to use its proprietary rebalancing technology to minimize tracking error.

Impact: This launch provides investors with new, accessible options to invest in the specific segment of capital market infrastructure, potentially benefiting from the growth of India's financial sector. It also introduces competition and product diversification within the mutual fund industry. Rating: 6/10.

Difficult terms: * **Passive Schemes**: These are mutual funds that aim to replicate the performance of a specific market index, rather than being actively managed to outperform it. * **ETF (Exchange Traded Fund)**: An investment fund traded on stock exchanges, much like individual stocks, that holds a basket of assets such as stocks, bonds, or commodities. * **Fund of Fund (FoF)**: A mutual fund scheme that invests in other mutual fund schemes. In this case, the FoF will invest in the Groww Nifty Capital Markets ETF. * **NFO (New Fund Offer)**: The initial period during which a mutual fund company sells units of a newly launched scheme to investors. * **Nifty Capital Markets Index – TRI (Total Return Index)**: A stock market index that tracks the performance of companies operating within India's capital markets sector, including exchanges and brokers. TRI signifies that the index includes income from dividends, assuming they are reinvested. * **Financial Intermediation**: The process where entities like banks or brokers act as middlemen between those who have money to save or invest and those who need to borrow money. * **AUM (Assets Under Management)**: The total market value of all financial assets managed by an investment company, such as a mutual fund. * **Tracking Error**: The degree to which a fund's returns deviate from its benchmark index's returns. * **Benchmark**: A standard against which the performance of an investment is measured. Here, the Nifty Capital Markets TRI is the benchmark.