Groww Mutual Fund announced the launch of the Groww Nifty PSE ETF on January 22, introducing a new investment avenue for investors seeking exposure to public sector enterprises. The open-ended exchange-traded fund is specifically designed to track the Nifty PSE Index – TRI, offering investors a systematic approach to investing in government-controlled companies.

Fund Launch Details

The new fund offer opened on January 22 and will remain accessible to investors until February 5. Following the NFO closure, the scheme is expected to reopen for regular trading on or before February 19.

Investment Strategy and Composition

The ETF will primarily invest in equity and equity-related instruments of companies included in the Nifty PSE Index. The fund aims to deliver returns that closely track the index's total return performance, subject to tracking error considerations. Additionally, the fund may allocate a small portion to debt and money market instruments to meet liquidity requirements in accordance with regulatory guidelines.

The underlying Nifty PSE Index tracks listed public sector enterprises where central or state governments maintain majority ownership stakes. The index methodology involves selecting up to 20 companies from the broader Nifty 500 universe, with selection based on free-float market capitalisation criteria.

Index Characteristics and Trading Features

The ETF will be listed on recognised stock exchanges, enabling investors to trade units during regular market hours similar to equity shares. To ensure adequate secondary market liquidity, the fund house has appointed market makers who will facilitate smooth trading operations.

Fund Management Team

The scheme will be managed by a team of three experienced fund managers: Nikhil Satam, Aakash Chauhan, and Shashi Kumar. This collaborative management approach aims to ensure effective portfolio oversight and index tracking performance.

The launch of this ETF provides investors with a cost-effective and transparent method to gain diversified exposure to India's public sector enterprise segment through a single investment vehicle.

Investment platform Groww has announced the pilot launch of Groww Prime, a specialised opt-in feature designed to enhance mutual fund portfolio management for its users. The new service represents a significant step forward in providing comprehensive investment support on the direct mutual fund platform.

Key Features of Groww Prime

The Groww Prime service introduces several enhanced capabilities for mutual fund investors:

Investment Management Capabilities

The Prime feature addresses several critical aspects of mutual fund investment management. Users will receive guidance on understanding which mutual funds align with their investment goals and how to balance their portfolios according to their risk-return expectations. The service also provides support for navigating key investment decisions, including redemptions and portfolio rebalancing strategies.

Leadership Perspective

Harsh Jain, COO and co-founder of Groww, explained the rationale behind the new feature launch. "Groww is a direct mutual fund platform built for DIY investors. Over the last few years, many of our customers have asked for features that can help them manage their mutual fund portfolios better, provide deeper research on schemes, and guide them in making important decisions," Jain stated.

Service Implementation

Groww Prime will operate as an opt-in feature available with regular mutual funds on the platform. This approach allows users to choose whether they want to access the enhanced portfolio management tools and personalised guidance services. The pilot launch enables Groww to test and refine the feature based on user feedback and requirements.

Platform Enhancement Strategy

The introduction of Groww Prime reflects the platform's commitment to addressing evolving customer needs in the mutual fund investment space. By providing deeper research capabilities and comprehensive portfolio management tools, the feature aims to bridge the gap between self-directed investing and professional investment guidance for retail investors on the direct mutual fund platform.