Groww Mutual Fund Launches Nifty Non-Cyclical Consumer Index Fund

Groww Mutual Fund has launched India’s first Nifty Non-Cyclical Consumer Index Fund. The scheme will be open for subscription till May 16.

The fund, an open-ended scheme, seeks long-term capital appreciation by investing in equity and equity-related instruments of Nifty Non-Cyclical Consumer Index, Groww Mutual Fund said.

The core objective of this scheme is to generate long-term capital growth through investments in securities of the Nifty Non-Cyclical Consumer Index with the same weightage, with the motive of providing returns before expenses that track the total return of the Nifty Non-Cyclical Consumer Index.

The minimum lumpsum investment in this scheme is INR 500, in the multiple of INR 1. In the case of SIP, the minimum amount to invest is INR 1,200, with options for monthly instalments of INR 100 each or quarterly instalments of INR 300 each, spread over a minimum of 12 instalments.

The index comprises leading companies in various industries, particularly those with the highest market capitalisation, emphasising well-established consumer brands that enjoy widespread trust and usage, thus offering relative insulation from economic fluctuations and are considered non-cyclical sectors.

“The Groww Nifty Non-Cyclical Index Fund is India’s first index fund, which enables people to invest in the top stocks from consumer industries such as FMCG, Textiles, etc., These companies manufacture items we need in our daily lives and tend to be slightly more insulated from economic cycles and therefore are seen as non-cyclical sectors,” Harsh Jain, cofounder and COO of Groww, said.

An exit load of 1% will be applicable on units redeemed or switched out within 30 days from the date of allotment; no exit load will be charged after this period. Units allotted through reinvestment of income distribution cum capital withdrawal are exempt from entry and exit loads. For systematic transactions like SIP, STP, etc., the prevailing exit load at the time of registration/enrollment applies.

Founded in 2017 by ex-Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww operates an online stockbroking platform and also offers direct mutual funds. It competes against the likes of Zerodha, ETMoney and StockGro, among others.

Last week, Groww said that it received Securities and Exchange Board of India’s (SEBI) nod to launch India’s first Nifty non-cyclical consumer index fund.

The development comes seven months after the fintech unicorn received approval from the market regulator to launch its maiden index fund. This paved the way for the stockbroking platform’s entry into the mutual fund space last year.

Groww has been aggressively advancing its “Super App” aspirations by diversifying its product range, expanding from instant personal loans to UPI payments, bolstering its offerings over the past year.

Last year, Groww acquired the mutual fund business of Indiabulls Housing Finance for a total of INR 175.6 Cr, laying the foundation for its asset management company (AMC) business.

Groww’s parent Billionbrains Garage turned profitable in the financial year 2022-23 (FY23) and reported a net profit of INR 448.7 Cr as against a net loss of INR 239 Cr in the previous fiscal year. Its operating revenue more than tripled year-on-year (YoY) to INR 1,277.8 Cr in FY23.