Groww BSE Power ETF FOF: Invest in India’s Power Sector with One Smart Fund

Groww Mutual Fund has launched its Groww BSE Power ETF FOF (Fund of Fund) to help investors tap into India’s dynamic and expanding power sector. This open-ended scheme will invest in the units of Groww BSE Power ETF, which tracks the BSE Power Index – TRI. With increasing electricity demand, clean energy transitions, and growing investment in power infrastructure, the Groww BSE Power ETF provides a focused and low-cost way to gain exposure to India’s power leaders. The fund is suited for investors aiming for long-term capital growth from India’s structural energy transformation.

Key Features of Groww BSE Power ETF

• Opening Date: July 18th 2025
• Closing Date: August 1st 2025
• Minimum Investment Amount: ₹500
• Exit Load: Nil
• Entry Load: Nil

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Objectives of Groww BSE Power ETF

The Groww BSE Power ETF aims to generate long-term capital appreciation by investing in units of the Groww BSE Power ETF. The ETF itself is designed to track the BSE Power Index – TRI, offering exposure to leading companies across India’s entire power value chain. There is no guarantee the investment objective will be achieved.

Investment Strategy of Groww BSE Power ETF

• Invests in units of Groww BSE Power ETF
• The ETF tracks the BSE Power Index – TRI
• Index includes power generation, transmission, distribution, and equipment companies
• Free-float market-cap weighted selection from the BSE 500 universe
• Reconstituted semi-annually for better sectoral representation

Risks Associated with Groww BSE Power ETF

• Classified as a high-risk investment
• Subject to equity market volatility
• Thematic exposure to one sector increases concentration risk
• No diversification beyond the power sector
• Returns depend on the performance of the underlying ETF and index constituents

Risk Mitigation Strategy by Groww BSE Power ETF

The NFO reduces stock-specific risk by investing in a well-structured ETF based on a widely tracked index. The BSE Power Index covers a broad range of companies across the power value chain, offering diversified exposure within the sector. Rules-based selection and rebalancing ensure transparency and reduce bias. Being passively managed, the fund benefits from lower costs and efficient execution, which helps cushion volatility over the long term.

What Type of Investor Should Invest in Groww BSE Power ETF?

• Investors bullish on India’s power sector and infrastructure growth
• Those preferring low-cost, transparent exposure to a specific theme
• Long-term investors with a high-risk appetite seeking sectoral diversification
• Individuals are not comfortable with direct stock picking

Where Will the Groww BSE Power ETF Invest?

• In units of Groww BSE Power ETF
• Indirect exposure to BSE Power Index constituents
• Includes top firms in generation (e.g., NTPC, Adani Power)
• Covers transmission & distribution (e.g., Power Grid, Torrent Power)
• Also includes equipment manufacturers (e.g., BHEL, ABB, Siemens)