Groww Mutual Fund has introduced the Groww Nifty India Railways PSU ETF, offering retail investors an opportunity to participate in the growing Indian Railways ecosystem. The new fund offer (NFO) is open for subscription from January 16-30, 2025.
NFO Details
The Groww Nifty India Railways PSU ETF is an open-ended scheme that tracks the Nifty India Railways PSU Index – TRI, with the same index serving as its benchmark. It is an exchange-traded fund (ETF) and provides investors with exposure to Indian Railways public sector enterprises (PSUs). With a minimum investment of Rs 500 and subsequent investments in multiples of Re 1. There is nil exit load.
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The launch comes amid a significant transformation in Indian Railways, backed by a Rs 2.52 trillion capital expenditure for FY 2024-25. The railway network, covering 68,584 km and more than 7,325 stations, supports the movement of 6.7 billion passengers annually and handles 27 per cent of India’s freight. The ETF’s portfolio is heavily weighted towards mid-cap stocks (54.61 per cent), offering potential for long-term growth.
According to Groww Mutual Fund, the scheme aims to generate long-term capital growth by investing in securities of the Nifty India Railways PSU Index in the same proportion, with the goal of providing returns before expenses that track the total return of the index, subject to tracking errors.
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Groww Mutual Fund said this fund will track the Nifty India Railways PSU Index-TRI, offering exposure to sectors such as construction (26.45 per cent), financial services (17.76 per cent), and consumer services (17.54 per cent). These industries support sectors like manufacturing, steel, and cement and are essential to modernisation.
Varun Gupta, CEO of Groww Mutual Fund, highlighted the significance of Indian Railways. He said: “Indian Railways is integral to the nation’s infrastructure and economic growth. The Groww Nifty India Railways PSU ETF offers investors a unique opportunity to participate in a sector pivotal to India's development and economic momentum.”
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Who Should Invest?
Groww Mutual Fund said the product is suitable for investors seeking long-term capital appreciation by investing in the Indian Railways ecosystem. It offers exposure to railway sector PSUs, which play a critical role in infrastructure and economic development. Also, it offers opportunity for investors to participate in a diverse portfolio of core and non-core PSUs through equities and equity-related instruments of the Nifty India Railways PSU Index-TRI.
