Groww Nifty Smallcap 250 ETF NFO Opens on October 10, 2025

The Groww Nifty Smallcap 250 ETF is an open-ended, growth-oriented equity scheme launched by Groww Mutual Fund, designed to generate long-term capital appreciation by investing in securities of the Nifty Smallcap 250 Index. The scheme aims to replicate the performance of the index, subject to tracking errors, and offers investors exposure to small-cap companies with potential for high growth. With a low to moderate risk profile, the NFO is suitable for investors seeking long-term wealth creation through equity investments in small-cap companies. Fund manager Shashi Kumar will actively manage the portfolio, balancing investments across small, mid, and large-cap securities while adhering to regulatory guidelines.

Key Features of Groww Nifty Smallcap 250 ETF

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• Open Date: October 10, 2025
• Close Date: October 24, 2025
• Minimum Investment Amount: ₹500
• Exit Load: Nil

Objective of Groww Nifty Smallcap 250 ETF

The primary objective of the Groww Nifty Smallcap 250 ETF is to generate long-term capital growth by investing in securities of the Nifty Smallcap 250 Index in the same proportion and weightage as the index. The scheme seeks to provide returns before expenses that track the total return of the index, although there is no assurance or guarantee of achieving the investment objective.

Investment Strategy of Groww Nifty Smallcap 250 ETF

• Invest 65–100% of assets in equity and equity-related instruments of small-cap companies.
• Allocate balance in mid-cap, large-cap, debt, and money market instruments as per market conditions.
• Take opportunistic allocations in growth stocks within regulatory limits.
• Utilise derivatives strategically to enhance returns, recognising the potential for disproportionate gains or losses.
• Optimise portfolio turnover to improve risk-adjusted returns while managing associated costs.

Risks Associated with Groww Nifty Smallcap 250 ETF

• Market Risk: Equity and equity-related instruments are volatile and may fluctuate due to macroeconomic, political, or market-specific factors.
• Liquidity Risk: Selling securities may be constrained by market volumes, especially for small-cap stocks.
• Interest Rate Risk: Changes in interest rates can impact the prices of debt or floating-rate instruments.
• Credit Risk: Issuer default or credit rating downgrades may affect returns from fixed-income instruments.
• Derivative Risk: Leverage in derivatives can result in disproportionate gains or losses.
• Settlement Risk: Exposure to Tri-party Repo and other settlement mechanisms may lead to losses if a counterparty defaults.

Risk Mitigation Strategy by Groww Nifty Smallcap 250 ETF

The Groww Nifty Smallcap 250 ETF mitigates risks through a diversified investment approach across small, mid, and large-cap companies, while also investing in debt and money market instruments. Derivative exposure is actively monitored to limit disproportionate losses. Settlement risks are managed via the Central Counterparty role of CCIL in Triparty Repo trades, with a Default Fund and waterfall mechanism ensuring losses are absorbed systematically. Portfolio turnover is optimised to balance risk-adjusted returns.

What Type of Investor Should Invest in Groww Nifty Smallcap 250 ETF?

• Investors seeking long-term capital growth through exposure to small-cap companies.
• Those with a moderate risk appetite are willing to tolerate short-term market volatility.
• Investors looking for index-linked returns replicating the Nifty Smallcap 250 Index.
• Individuals aiming to diversify portfolios across equity instruments while keeping a portion in large and mid-cap stocks.

Where Will the Groww Nifty Smallcap 250 ETF Invest?

• Equity and equity-related instruments of small-cap companies listed on Indian stock exchanges.
• Selective investments in mid-cap and large-cap stocks for diversification.
• Debt and money market instruments for liquidity management and risk mitigation.
• Derivative instruments for strategic opportunities within regulatory limits