NFO Alert: Groww Mutual Fund introduces BSE Power-based passive funds

Economic Times

11 hours ago

Synopsis
Groww Mutual Fund has launched two new passive schemes—the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF)—to track the BSE Power Index – TRI. These schemes provide low-cost exposure to India's power sector. The NFO for both funds will be open from July 18 to August 1, 2025.
ETMarkets.com Groww launches India's first power-focused ETF and FoF. Groww Mutual Fund has launched two new passive investment schemes: the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF). Both schemes aim to track the BSE Power Index – Total Return Index (TRI), offering investors low-cost exposure to companies in India's power sector.The New Fund Offer (NFO) for both schemes will open for subscription on July 18 and close on August 1, 2025.
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The Groww BSE Power ETF is an exchange-traded fund that seeks to replicate the BSE Power Index by investing in its underlying constituents in the same proportion. The Groww BSE Power ETF Fund of Fund (FoF) is a mutual fund that aims to invest in units of the ETF. Together, these schemes offer two different formats for participating in the same investment theme, according to a press release from the fund house.As per the release, these are India's first power-focused ETF and FoF, designed to capture the sector's evolution via the BSE Power Index – Total Return Index (TRI).
The schemes aim to capitalize on India's evolving electricity landscape, shaped by long-term economic trends, supportive policy measures, and the accelerating momentum in energy transition.The fund house noted that constituents of the BSE Power Index have witnessed their revenues nearly double, and net profits more than triple between 2020 and 2024, indicating improved business fundamentals.Overall, the power sector is undergoing structural reform, supported by long-term tailwinds such as policy initiatives, rising consumption, clean energy adoption, and digital infrastructure. The Groww BSE Power ETF and FoF aim to capture this opportunity through a disciplined, index-based investment approach.The minimum application amount is Rs 500, with no exit load. Both schemes will be benchmarked against the BSE Power Index – TRI and will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar.
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On the other hand, the Groww BSE Power ETF FoF is ideal for investors aiming for long-term capital appreciation by investing in units of the Groww BSE Power ETF.