Groww Nifty Capital Markets ETF FOF - Direct (G) NFO Opens on September 26, 2025

The Groww Nifty Capital Markets ETF FOF is designed to offer investors an opportunity to achieve long-term capital growth by investing in units of an underlying exchange-traded fund (ETF) focused on the capital markets sector. As a fund-of-funds (FOF), it primarily invests in the Groww Nifty Capital Markets ETF, which tracks the performance of select equities in the financial and capital markets space. The NFO is open-ended and growth-oriented, making it suitable for investors looking for wealth accumulation over a longer time horizon. While the scheme aims to generate consistent returns, there is no guarantee that its investment objective will be met, and performance may vary depending on market conditions. The NFO also provides flexibility through Systematic Investment Plans (SIP), making it accessible even for investors starting with modest amounts.

Key Features of Groww Nifty Capital Markets ETF FOF

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• Opening Date: September 26, 2025
• Closing Date: October, 10 2025
• Exit Load: Nil
• Minimum Investment Amount: ₹500

Objective of Groww Nifty Capital Markets ETF FOF

The primary objective of the Groww Nifty Capital Markets ETF FOF - Direct (G) is to generate long-term capital growth by investing in units of the Groww Nifty Capital Markets ETF. It aims to offer investors exposure to the financial sector through a diversified fund-of-funds structure, while maintaining a growth-oriented strategy. There is no assurance or guarantee that the stated objective will be achieved.

Investment Strategy of Groww Nifty Capital Markets ETF FOF

• Invest primarily in units of the Groww Nifty Capital Markets ETF, which reflects the performance of financial sector equities.
• Track the underlying ETF’s composition to reduce deviations from market performance.
• Allocate residual funds in liquid instruments or cash equivalents to meet liquidity needs.
• Rebalance the portfolio periodically in line with the ETF’s changes to minimise tracking errors and maintain alignment with investment goals.
• Utilise a systematic approach for SIP investments to enhance disciplined investing over time.

Risks Associated with Groww Nifty Capital Markets ETF FOF

• Market Risk: The underlying ETF may experience volatility due to fluctuations in financial sector equities.
• Tracking Error Risk: Slight deviations between the NFO and the ETF performance can affect returns.
• Liquidity Risk: Limited liquidity in ETF units or underlying securities may impact timely redemptions.
• Concentration Risk: Focusing on the capital markets sector increases exposure to sector-specific downturns.
• No Guarantee of Returns: Investors should be aware that capital appreciation is subject to market conditions, and past performance does not indicate future results.
• Operational Risks: Potential risks related to fund management, errors, or delays in processing transactions.

Risk Mitigation Strategy by Groww Nifty Capital Markets ETF FOF

The Groww Nifty Capital Markets ETF FOF - Direct (G) mitigates risks through diversification across the ETF’s constituent equities while maintaining a low tracking error. Portfolio adjustments are conducted periodically to align with the ETF and market developments. A portion of the fund is held in liquid instruments to meet redemption requirements and reduce liquidity strain. The fund manager monitors market trends and employs prudent investment practices to minimise losses. Additionally, disciplined SIP investing can help mitigate timing risks for investors entering the market at different points. The AMC incorporates robust risk management frameworks at both the enterprise and scheme levels to ensure risks are actively monitored and controlled.

What Type of Investor Should Invest in Groww Nifty Capital Markets ETF FOF?

• Investors seeking long-term capital growth through exposure to the financial sector.
• Those comfortable with moderate to high market volatility and willing to accept investment risk.
• Individuals looking to invest via a structured growth-oriented plan, such as SIP.
• Investors aiming for a diversified fund-of-funds approach without directly selecting individual equities.

Where Will the Groww Nifty Capital Markets ETF FOF Invest?

• Primarily in units of the Groww Nifty Capital Markets ETF, which tracks financial sector equities.
• A small portion may be invested in cash or money market instruments to ensure liquidity.
• Funds may be allocated to debt or liquid instruments to manage operational needs.
• Investments will be diversified within the ETF’s underlying holdings to reduce sector concentration risks.