Groww Unveils Metal ETF: Your Gateway to India's Booming Mining Sector? NFO Open Now!

Groww Mutual Fund has introduced a new investment opportunity for Indian investors with the launch of the Groww Nifty Metal ETF. This Exchange Traded Fund (ETF) is designed to track the performance of the Nifty Metal Index, offering a way to invest in a diversified basket of companies within India’s vital metals and mining sector.

The New Fund Offering (NFO) for the Groww Nifty Metal ETF is currently open and will close on December 17. Investors can subscribe to this new scheme during this period. The fund seeks to replicate the Nifty Metal Index – Total Return Index (TRI) by investing in the same stocks that constitute the index, maintaining similar proportions to minimize tracking error.

Importance of the Metals Sector

The Nifty Metal Index comprises companies engaged in the mining, processing, and manufacturing of essential metals such as steel, aluminium, copper, zinc, and iron ore. These commodities are foundational to India's ongoing industrial development and infrastructure expansion.

• The sector plays a critical role in supporting India's construction, transportation, and manufacturing industries.
• It reflects India's significant position as a global producer of various metals.

Key Constituents and Performance

As of December 2, 2025, the Nifty Metal Index is weighted towards major players in the industry. The top constituents by weight include:

• Tata Steel Limited: 18.82%
• Hindalco Industries Limited: 15.85%
• JSW Steel Limited: 14.76%
• Vedanta Limited: 12.39%
• Adani Enterprises Limited: 7.91%

Historical data, as of November 18, 2025, indicates strong performance for the Nifty Metal TRI.

• Over one year, the index delivered 16.46% returns, outperforming the broader Nifty 50 TRI's 11.85% return.
• Over ten years, the Nifty Metal TRI achieved 22.20% returns, compared to the Nifty 50 TRI's 14.24% return.

Note: Past performance is not indicative of future results. A disclaimer is typically included with such performance data.

Government Support and Policy

India's metals and mining sector benefits from significant government support and favourable policies aimed at fostering growth and ensuring resource security.

• Initiatives like the Production-Linked Incentive (PLI) scheme for specialty steel are in place.
• Reforms in offshore mineral exploration are being implemented.
• Measures are being taken to secure critical minerals essential for clean-energy projects.
• The government permits 100% Foreign Direct Investment (FDI) in the mining and metallurgy sectors under the automatic route.

Scheme Details

The Groww Nifty Metal ETF offers several attractive features for investors:

• Minimum Investment: ₹500
• Exit Load: None
• Benchmark: Nifty Metal TRI
• Fund Managers: The scheme will be jointly managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar.

Impact

This new ETF provides investors with a convenient and cost-effective way to gain exposure to India's metals and mining sector, which is closely linked to the country's economic growth and infrastructure development. It can diversify portfolios and potentially offer significant returns if the sector performs well. The launch is positive for the sector as it increases investment avenues.

Impact Rating: 7/10

Difficult Terms Explained

• Passive Scheme: An investment fund that aims to replicate the performance of a specific market index, such as the Nifty Metal Index, rather than actively managed by a fund manager to beat the market.
• ETF (Exchange Traded Fund): A type of investment fund that holds assets like stocks, bonds, or commodities, and trades on stock exchanges like individual stocks. ETFs offer diversification and can be bought or sold throughout the trading day.
• NFO (New Fund Offering): The period during which a mutual fund scheme is made available for subscription by investors for the first time. It's the initial opportunity to invest in a newly launched fund.
• Nifty Metal Index – Total Return Index (TRI): This index tracks the performance of the top Indian companies in the metals and mining sector. The 'Total Return Index' component means it includes both price appreciation and the reinvestment of dividends paid out by the constituent companies.
• Tracking Error: The difference between the expected return of an index fund (like an ETF) and the actual return of the index it is supposed to track. Lower tracking error indicates better replication of the index.
• Constituent Stocks: The individual securities or companies that make up a particular stock market index. For the Nifty Metal Index, these are the specific metal and mining companies included in its calculation.
• PLI (Production-Linked Incentive) Scheme: A government initiative designed to encourage domestic production and exports by providing financial incentives based on the incremental sales achieved by companies.
• FDI (Foreign Direct Investment): An investment made by a company or individual from one country into business interests located in another country, often involving control over the foreign enterprise.