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Groww Nifty 50 Index Fund NFO Opens: Key Details, Strategy & Suitability

The NFO is an open-ended equity index fund designed to replicate the performance of the Nifty 50 Index. By investing in the same securities and weightage as the index, this scheme aims to deliver long-term capital growth, subject to tracking errors. As a passively managed fund, it eliminates active stock selection, providing investors with an opportunity to participate in India’s top 50 companies through a single investment vehicle. The scheme is suitable for investors seeking broad-market equity exposure without the complexities of active management. However, being market-linked, returns are not guaranteed, and investors should be aware of the risks involved.
Key Features of Groww Nifty 50 Index Fund
- Opening Date: July 2, 2025
- Closing Date: July 16, 2025
- Exit Load: Nil
- Minimum Investment Amount: ₹500 and in multiples of ₹1 thereafter
- Fund Manager: Mr. Shashi Kumar, Mr. Nikhil Satam & Mr. Aakash Chauhan

Objective of Groww Nifty 50 Index Fund
The objective of the Groww Nifty 50 Index Fund - Direct (G) is to generate long-term capital appreciation by investing in securities that are part of the Nifty 50 Index. The fund will invest in the same stocks and the same proportion as the index to mirror its performance, before accounting for expenses and tracking errors. However, there is no assurance or guarantee that the scheme will achieve its objective.
Investment Strategy of Groww Nifty 50 Index Fund
- The scheme follows a passive investment strategy, tracking the Nifty 50 Index.
- 95–100% of the portfolio will be invested in the same securities and weightage as the index.
- Up to 5% will be invested in debt and money market instruments to manage liquidity.
- The fund aims to minimise tracking error and rebalances within 7 days of index changes.
- The scheme avoids active stock selection, ensuring full alignment with the Nifty 50 Index.
- A portion may be invested in short-term debt instruments to manage cash effectively.
Risks Associated with Groww Nifty 50 Index Fund
- Market Risk: The NAV may fluctuate due to market volatility, economic changes, or political events.
- Concentration Risk: Exposure is limited to the Nifty 50 stocks, and any sectoral downturn may impact returns.
- Passive Investment Risk: No active decisions to mitigate market downturns.
- Tracking Error: Performance may deviate slightly from the Nifty 50 Index due to fund expenses or rebalancing delays.
- Liquidity Risk: Illiquidity in underlying securities may affect redemption or cause slippage.
- Debt Market Risk: Interest rate fluctuations and credit events may affect the small debt portion of the portfolio.
Risk Mitigation Strategy by Groww Nifty 50 Index Fund
The Groww Nifty 50 Index Fund - Direct (G) employs a structured risk management approach to align closely with the Nifty 50 Index. The portfolio is designed to mirror the index, thus minimising concentration risk beyond what is inherent to the index itself. The fund manager aims to keep cash levels minimal and rebalances the portfolio promptly, within seven days of any index changes, to reduce tracking error. The debt component is invested in short-term debt and money market instruments to manage liquidity while limiting exposure to interest rate and credit risks. Regular monitoring, strict compliance, and the avoidance of active stock selection further help reduce additional market volatility.
What Type of Investor Should Invest in this NFO?
- Investors seeking long-term capital growth by investing in India’s top 50 companies.
- Those who prefer low-cost, passively managed funds over actively managed schemes.
- Individuals are comfortable with market fluctuations and no guaranteed returns.
- Investors looking for broad-market exposure without the complexities of stock selection.
- Suitable for investors with a moderately high-risk appetite seeking index-based investments.
- Ideal for those building a core equity portfolio with a long-term wealth creation goal.
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