Groww Multi Asset Allocation Fund NFO Opens on September 10

The Groww Multi Asset Allocation Fund is an open-ended multi-asset allocation fund designed to offer long-term capital appreciation by investing across equity, debt, commodities, and units of REITs and InvITs. It aims to provide investors with a well-diversified portfolio, helping manage risks through exposure to various asset classes with historically low correlations. The fund will employ a structured, data-driven framework called SHAASTRA, integrating fundamental analysis, macroeconomic indicators, and market trends to guide asset allocation decisions. While the scheme is positioned for long-term growth, returns are subject to market risks, and there is no guaranteed income. Investors can choose from Growth or IDCW options under Regular and Direct plans.

Key Features of Groww Multi Asset Allocation Fund:

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• Opening Date: September 10, 2025
• Closing Date: September 24, 2025
• Exit Load: 1% if redeemed within 30 days; NIL after 30 days
• Minimum Investment Amount: ₹500 during NFO and in multiples of ₹1 thereafter

Objective of Groww Multi Asset Allocation Fund

The Groww Multi Asset Allocation Fund - Direct (G) seeks to achieve long-term capital growth by predominantly investing in equity and equity-related instruments, debt and money market instruments, commodities, and units of REITs & InvITs. Its objective is to create a diversified, multi-asset portfolio that balances risk and return over the long term.

Investment Strategy of Groww Multi Asset Allocation Fund:

• Invest in a diversified portfolio of equities, debt instruments, commodities, and units of REITs/InvITs.
• Use the SHAASTRA framework for systematic asset allocation and risk assessment.
• Maintain flexibility to dynamically adjust exposures based on market conditions.
• Employ a combination of ticket revenue, annuity, and capital appreciation strategies across asset classes.
• Derivative instruments may be used for hedging or portfolio balancing, in compliance with SEBI and RBI guidelines.

Risks Associated with Groww Multi Asset Allocation Fund:

• Equity Risk: Price volatility due to market fluctuations, economic and political developments.
• Interest Rate Risk: Fixed-income instruments may fall in value when interest rates rise.
• Credit Risk: The Possibility of default or downgrade by issuers of debt securities.
• Liquidity Risk: Limited marketability may hinder the timely buying or selling of securities.
• Derivative Risk: Leverage can cause disproportionate gains or losses; execution depends on fund manager decisions.
• Securities Lending & Short Selling Risks: Potential for losses during lending, borrowing, or covering short positions.
• Market & Economic Risks: Performance affected by macroeconomic trends, policy changes, and global market conditions.

Risk Mitigation Strategy by Groww Multi Asset Allocation Fund:

• Equity Exposure: Diversified across sectors and market capitalisation; maintain adequate liquidity.
• Debt Exposure: Credit and interest rate risks assessed using detailed financial analysis; reinvestment risks minimised.
• Derivative Exposure: Monitored using robust controls; employed primarily for hedging and balancing portfolios.
• Liquidity Management: Staggered maturities and selective investment in liquid securities to meet redemption obligations.
• Settlement Risk: Investments routed via centralised clearing and settlement systems like CCIL to reduce counterparty risk.

What Type of Investor Should Invest in Groww Multi Asset Allocation Fund?

• Suitable for investors seeking long-term capital growth.
• Ideal for those willing to accept moderate to high market risk in exchange for diversification.
• Investors seeking exposure across equity, debt, commodities, and alternative assets like REITs and InvITs.

Where Will the Groww Multi Asset Allocation Fund Invest?

• Listed equity shares and equity-related securities.
• Debt and money market instruments, including government and corporate securities.
• Commodities via ETFs or Exchange Traded Commodity Derivatives.
• Units of REITs and InvITs, providing exposure to real estate and infrastructure sectors.
• Asset allocation will be dynamically adjusted using the SHAASTRA framework, with investments spread across sectors to manage risk.