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Time of India
2 days ago
- Business
- Time of India
NFO Alert: Groww Mutual Fund introduces BSE Power-based passive funds
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. Also Read | Nearly 112 lakh SIPs closed in 2025: Should you worry about the negative net SIP trend? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » 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). Live Events 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. Also Read | Mazagon Dock and CONCOR among stocks bought and sold by mutual funds in June The Groww BSE Power ETF is suitable for investors seeking long-term capital appreciation through investments in equity and equity-related instruments that are part of the BSE Power Index. 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.
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Business Standard
2 days ago
- Business
- Business Standard
Groww rolls out BSE Power ETF, FoF amid India's surging electricity demand
Groww Mutual Fund has launched two new passive investment schemes — Groww BSE Power ETF and Groww BSE Power ETF Fund of Fund (FoF) — providing retail investors with a low-cost, index-based route to participate in India's rapidly transforming power sector. Both schemes are benchmarked to the BSE Power Index – Total Return Index (TRI), offering exposure to a diversified basket of companies engaged in power generation, transmission, utilities, and infrastructure. First, What Are ETF and ETF FoF? An ETF (Exchange-Traded Fund) is a marketable security that tracks an index, commodity, or sector, and trades like a stock on an exchange. The Groww BSE Power ETF invests directly in the stocks of companies in the BSE Power Index in the same proportion, offering real-time pricing, liquidity, and lower expense ratios. A Fund of Fund (FoF), in this case the Groww BSE Power ETF FoF, is a mutual fund that does not invest directly in stocks, but instead invests in units of the underlying ETF. It is suitable for investors who prefer the ease of SIPs, automatic investment handling, and don't wish to trade ETFs directly on a stock exchange. Together, they offer two ways to participate in the same theme — ETF for market-savvy investors, and ETF FoF for traditional mutual fund investors. Why Power, Why Now? India's electricity demand has seen a structural surge — from 317 TWh in 2000 to over 1,532 TWh in 2024. But the story is far from over. With per capita consumption still far below global averages, rapid urbanisation, and a shift to EVs and AI-driven data centres, the next phase of power growth is already underway. Key factors driving optimism around the power sector, as per Groww: Massive Headroom for Growth: Per capita consumption in India is just 1.42 MWh, compared to the global average of 3.78 MWh. This is projected to nearly double by 2035. Transition from Deficit to Exporter: India met a record 241 GW peak demand without shortfall in June 2025 and exported $1.5 billion worth of electricity in 2023. Policy Push: ₹31 lakh crore worth of power-related projects are in the National Infrastructure Pipeline. Major government schemes are targeting solar, battery storage, and grid modernization. Clean Energy Shift: Solar and wind capacities now stand at 100 GW and 50 GW respectively. Renewables have become increasingly cost-competitive compared to coal. Rising Demand from Tech: With 123 million EVs expected by 2032 and rapid expansion of data centres, electricity consumption will see new drivers beyond traditional usage. Strong Sector Fundamentals: Between 2020 and 2024, BSE Power Index constituents doubled their revenues and tripled net profits — reflecting structural sectoral strength. Why the BSE Power Index? The BSE Power Index is composed of 14 companies across the power value chain: Power Generation – 39% Transmission – 18% Integrated Utilities – 13% Infrastructure and Equipment – 30% Top constituents by weight include: It has also historically outperformed the BSE Sensex over medium and long-term periods, underlining its investment potential. Product Highlights Minimum Investment: ₹500 Exit Load: Nil Benchmark: BSE Power Index – TRI Fund Managers: Nikhil Satam, Aakash Chauhan, and Shashi Kumar Tracking Approach: SPEARTech-based high-frequency rebalancing for reduced tracking error Groww's new offerings provide a convenient and cost-effective gateway for investors seeking to ride the megatrends reshaping India's energy economy — especially those who prefer index investing with a long-term horizon. Before investing, investors should review the scheme documents and consult their financial advisor.
Time of India
28-04-2025
- Business
- Time of India
Nilesh Shah lists 5 key challenges faced by mutual fund managers in generating alpha
This alpha generation / outperformance is despite constraints of - Fund keeps cash to provide Daily Liquidity. Index doesn't have any cash. Cash creates a drag on Fund Performance by 50 bps to 100 bps. - Index can have more than 10 % weight in a Stock. Fund weight is capped at… — Nilesh Shah (@NileshShah68) April 27, 2025 Live Events Rolling Return Alpha / Outperformance over Benchmark Index — Nilesh Shah (@NileshShah68) April 27, 2025 First They said fund managers don't outperform they said large cap fund managers don't outperform index. Then they said small and mid cap fund managers don't outperform Index. now they say Fund Managers don't outperform index on a five year risk adjusted basis. Going… — Nilesh Shah (@NileshShah68) April 27, 2025 Despite various constraints, Kotak Mutual Fund's schemes have been adding value to investors' returns — generating alpha on SIP , point-to-point, and rolling return basis. Nilesh Shah , managing director of Kotak Mutual Fund , noted that this outperformance is akin to fund managers running a hurdle race while being held accountable as if they were running a normal sharing five constraints, Shah said that the fund keeps cash to provide daily liquidity, the index doesn't have any cash and keeping cash in the portfolio creates a drag on fund performance by 50 bps to 100 second constraint, according to Shah, is 'Index can have more than 10% weight in a Stock. Fund weight is capped at 10%. Most Funds have to book profit when stock weight goes above 10%.' The third constraint is that index changes happen at the closing price, whereas the fund has to bear the impact cost of buy and sell next constraint, shared by Shah, is that the Index doesn't have any transaction costs, whereas the fund has to incur transaction costs for entry and exit from stocks/investors.'Globally Fund performance is compared gross of expenses with total return Index. We compare net of expenses fund performance with the Total Return Index,' Shah wrote on social media platform X (formerly Twitter).The schemes managed by Kotak Mutual Fund have generated alpha or outperformed the benchmark index across different timeframes, such as three-, five-, seven-, and 10 years, based on SIP returns, rolling return, and point-to-point returnsShah compared what many investors or people say about the fund managers when there is a slight underperformance against the benchmark with reference to a popular dialogue from the Devdas movie.'First, they said fund managers don't outperform index. Then they said large-cap fund managers don't outperform index. Then they said small and mid-cap fund managers don't outperform index,' Shah of Kotak Mutual Fund wrote on X.'Now they say Fund Managers don't outperform index on a five-year risk-adjusted basis. Going forward, what will they say ?' he added.
