Groww Nifty Realty ETF NFO Opens on September 19, 2025

The Groww Nifty Realty ETF is an open-ended exchange-traded fund (ETF) designed to mirror the performance of the Nifty Realty Index. By investing in the same proportion and weightage as the index, the scheme seeks to provide long-term capital growth with minimal tracking error. It offers investors an affordable entry point with a minimum investment of just ₹500, making it accessible to a wide range of participants. The fund adopts a passive management strategy, aiming to deliver returns that are commensurate with the Nifty Realty Index. While it does not guarantee returns, the structure and focus make it an appealing option for investors interested in India’s real estate sector.

Key Features of Groww Nifty Realty ETF

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• Opening Date: September 19, 2025
• Closing Date: October 03, 2025
• Exit Load: Nil
• Minimum Investment: ₹500 and in multiples of ₹1 thereafter

Objective of the NFO

The objective of the Groww Nifty Realty ETF is to generate long-term capital growth by investing in the securities of the Nifty Realty Index. The scheme seeks to track the total return of the index, subject to tracking errors. However, no assurance can be given that the objective will be achieved.

Investment Strategy of Groww Nifty Realty ETF

• Passive management by replicating the Nifty Realty Index.
• Portfolio aligned with index composition and weightage.
• Regular rebalancing to minimise tracking error.
• Part of the funds may be invested in debt and money market instruments for liquidity.
• Flexibility to invest in other mutual fund schemes as permitted by regulations.

Risks Associated with Groww Nifty Realty ETF

• Market Risk: Since it mirrors the Nifty Realty Index, performance is subject to real estate market fluctuations.
• Tracking Error Risk: Returns may slightly deviate from the index due to portfolio adjustments and expenses.
• Debt Market Risks: Interest rate changes, rating migration, and liquidity issues may affect the small debt portion.
• Derivative Risk: Use of derivatives for balancing may lead to higher volatility and potential losses if not executed efficiently.

Risk Mitigation Strategy by Groww Nifty Realty ETF

The NFO follows a passive approach, keeping portfolio composition directly aligned with the Nifty Realty Index to minimise stock selection risks. Regular monitoring ensures any changes in index weightage are promptly reflected in the portfolio, thereby controlling tracking errors. For the debt allocation, the scheme limits exposure to short-term instruments such as money market securities and overnight funds, reducing volatility and reinvestment risks. The fund manager also aims to maintain minimal cash levels to optimise returns while controlling liquidity risk.

What Type of Investor Should Invest in Groww Nifty Realty ETF?

• Investors seeking long-term capital appreciation.
• Those interested in exposure to India’s real estate sector through the Nifty Realty Index.
• Participants prefer a passive investment style with low management intervention.
• Individuals who can tolerate short-term volatility but aim for steady growth aligned with the broader market index.

Where Will the Groww Nifty Realty ETF Invest?

• Securities that are part of the Nifty Realty Index, in the same proportion/weightage.
• A small portion may be allocated to debt and money market instruments for liquidity.
• Potential exposure to other mutual fund schemes as allowed by regulations.
• Use of equity derivatives for portfolio balancing, within SEBI’s guidelines.