&w=3840&q=100)
Groww rolls out BSE Power ETF, FoF amid India's surging electricity demand
Both schemes are benchmarked to the BSE Power Index – Total Return Index (TRI), offering exposure to a diversified basket of companies engaged in power generation, transmission, utilities, and infrastructure.
First, What Are ETF and ETF FoF?
An ETF (Exchange-Traded Fund) is a marketable security that tracks an index, commodity, or sector, and trades like a stock on an exchange. The Groww BSE Power ETF invests directly in the stocks of companies in the BSE Power Index in the same proportion, offering real-time pricing, liquidity, and lower expense ratios.
A Fund of Fund (FoF), in this case the Groww BSE Power ETF FoF, is a mutual fund that does not invest directly in stocks, but instead invests in units of the underlying ETF. It is suitable for investors who prefer the ease of SIPs, automatic investment handling, and don't wish to trade ETFs directly on a stock exchange.
Together, they offer two ways to participate in the same theme — ETF for market-savvy investors, and ETF FoF for traditional mutual fund investors.
Why Power, Why Now?
India's electricity demand has seen a structural surge — from 317 TWh in 2000 to over 1,532 TWh in 2024. But the story is far from over. With per capita consumption still far below global averages, rapid urbanisation, and a shift to EVs and AI-driven data centres, the next phase of power growth is already underway.
Key factors driving optimism around the power sector, as per Groww:
Massive Headroom for Growth: Per capita consumption in India is just 1.42 MWh, compared to the global average of 3.78 MWh. This is projected to nearly double by 2035.
Transition from Deficit to Exporter: India met a record 241 GW peak demand without shortfall in June 2025 and exported $1.5 billion worth of electricity in 2023.
Policy Push: ₹31 lakh crore worth of power-related projects are in the National Infrastructure Pipeline. Major government schemes are targeting solar, battery storage, and grid modernization.
Clean Energy Shift: Solar and wind capacities now stand at 100 GW and 50 GW respectively. Renewables have become increasingly cost-competitive compared to coal.
Rising Demand from Tech: With 123 million EVs expected by 2032 and rapid expansion of data centres, electricity consumption will see new drivers beyond traditional usage.
Strong Sector Fundamentals: Between 2020 and 2024, BSE Power Index constituents doubled their revenues and tripled net profits — reflecting structural sectoral strength.
Why the BSE Power Index?
The BSE Power Index is composed of 14 companies across the power value chain:
Power Generation – 39%
Transmission – 18%
Integrated Utilities – 13%
Infrastructure and Equipment – 30%
Top constituents by weight include:
It has also historically outperformed the BSE Sensex over medium and long-term periods, underlining its investment potential.
Product Highlights
Minimum Investment: ₹500
Exit Load: Nil
Benchmark: BSE Power Index – TRI
Fund Managers: Nikhil Satam, Aakash Chauhan, and Shashi Kumar
Tracking Approach: SPEARTech-based high-frequency rebalancing for reduced tracking error
Groww's new offerings provide a convenient and cost-effective gateway for investors seeking to ride the megatrends reshaping India's energy economy — especially those who prefer index investing with a long-term horizon.
Before investing, investors should review the scheme documents and consult their financial advisor.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
04-08-2025
- Time of India
NFO Alert: Baroda BNP Paribas Mutual Fund launches Gold ETF Fund of Fund
Live Events Baroda BNP Paribas Asset Management India has announced the launch of a new fund of fund scheme, the Baroda BNP Paribas Gold ETF Fund of Fund (FoF), which offers long-term investors seeking investment in gold-related assets a simple, low-cost and viable investment new fund offer , or NFO, is open for subscription and will close on August Read | Nifty slips into consolidation: What is the right strategy for mutual fund investors now? The fund offers high liquidity and is designed for investors seeking smart, low-volatility exposure to gold with potential for long-term capital appreciation . An exit load of 1% applies if units are redeemed or switched out within 15 days from the date of allotment. No exit load is payable on redemptions or switches made after 15 days, making it a flexible and convenient investment option for gold enthusiasts, according to the press release.'Indian households are one of the world's largest holders of gold. Their holdings of around 25,000 tonnes of this precious metal are more than the combined holdings of the top 10 reserve banks of the world*. However, the spectacular rise in the price of gold has made savings in gold inaccessible to a large percentage of the Indian populace,' said Prashant Pimple, CIO – Fixed Income, Baroda BNP Paribas MF.'With its low cost of holding, ease of transaction and low minimum investment amount, we have tried to make gold once again accessible to retail investors via our Baroda BNP Paribas Gold ETF Fund of Fund,' he fund will be managed by Gurvinder Singh Wasan, Madhav Vyas and Swapna Shelar. Baroda BNP Paribas Gold ETF Fund of Fund enables investors to access the precious metal in a convenient and secure manner, without the challenges of physical Read | SIP is always going to be better than an EMI : Deepak Shenoy of Capitalmind Mutual Fund says With lump sum investments starting at just Rs 1,000 (and in multiples of Re 1 thereafter) and monthly Systematic Investment Plans (SIPs) starting from just Rs 500, the scheme aims to bring gold investing within reach of every gold prices nearing Rs 1 lakh per 10 grams, affordability has become a major hurdle for many investors. The fund seeks to offer a timely solution by allowing gold exposure through mutual fund units. It also benefits from the rising demand among central banks globally, who have turned to adding to their existing gold reserves, amid geopolitical uncertainty, the release said.'If one looks at the last 10–25* years, then historically gold returns over the period have been almost as good as equity, or even better in some instances. This, along with its negative correlation with equity, reinforces its position as a potential stabiliser to the overall volatility of an investor's portfolio,' said Gurvinder Wasan, Senior Fund Manager, AMC.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
04-08-2025
- Economic Times
NFO Alert: Baroda BNP Paribas Mutual Fund launches Gold ETF Fund of Fund
Synopsis The Baroda BNP Paribas Gold ETF Fund of Fund (FoF) offers high liquidity and aims to offer investors a smart, low-volatility way to gain gold exposure with long-term growth potential. A 1% exit load applies on redemptions or switches within 15 days, after which no exit load is charged, enhancing its flexibility. The fund will be managed by Gurvinder Singh Wasan, Madhav Vyas and Swapna Shelar. Baroda BNP Paribas Asset Management India has announced the launch of a new fund of fund scheme, the Baroda BNP Paribas Gold ETF Fund of Fund (FoF), which offers long-term investors seeking investment in gold-related assets a simple, low-cost and viable investment option. The new fund offer, or NFO, is open for subscription and will close on August 14. Also Read | Nifty slips into consolidation: What is the right strategy for mutual fund investors now? The fund offers high liquidity and is designed for investors seeking smart, low-volatility exposure to gold with potential for long-term capital appreciation. An exit load of 1% applies if units are redeemed or switched out within 15 days from the date of allotment. No exit load is payable on redemptions or switches made after 15 days, making it a flexible and convenient investment option for gold enthusiasts, according to the press release.'Indian households are one of the world's largest holders of gold. Their holdings of around 25,000 tonnes of this precious metal are more than the combined holdings of the top 10 reserve banks of the world*. However, the spectacular rise in the price of gold has made savings in gold inaccessible to a large percentage of the Indian populace,' said Prashant Pimple, CIO – Fixed Income, Baroda BNP Paribas MF. 'With its low cost of holding, ease of transaction and low minimum investment amount, we have tried to make gold once again accessible to retail investors via our Baroda BNP Paribas Gold ETF Fund of Fund,' he fund will be managed by Gurvinder Singh Wasan, Madhav Vyas and Swapna Shelar. Baroda BNP Paribas Gold ETF Fund of Fund enables investors to access the precious metal in a convenient and secure manner, without the challenges of physical storage. Also Read | SIP is always going to be better than an EMI : Deepak Shenoy of Capitalmind Mutual Fund saysWith lump sum investments starting at just Rs 1,000 (and in multiples of Re 1 thereafter) and monthly Systematic Investment Plans (SIPs) starting from just Rs 500, the scheme aims to bring gold investing within reach of every gold prices nearing Rs 1 lakh per 10 grams, affordability has become a major hurdle for many investors. The fund seeks to offer a timely solution by allowing gold exposure through mutual fund units. It also benefits from the rising demand among central banks globally, who have turned to adding to their existing gold reserves, amid geopolitical uncertainty, the release said.'If one looks at the last 10–25* years, then historically gold returns over the period have been almost as good as equity, or even better in some instances. This, along with its negative correlation with equity, reinforces its position as a potential stabiliser to the overall volatility of an investor's portfolio,' said Gurvinder Wasan, Senior Fund Manager, AMC.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Mint
01-08-2025
- Mint
Mutual Funds: 10 new fund offers (NFOs) open for subscription in August—should you invest?
In August, around 10 new fund offers (NFOs) are open for investment. The schemes span a variety of categories, including multi-asset allocation, equity savings, momentum, and special opportunities funds. Here, we list all ten new fund offers (NFOs) currently open for subscription by investors. I. 360 One Multi Asset Allocation Fund: This hybrid scheme opened for investment on 30 July and will remain open until 13 August. The minimum subscription amount is ₹ 1,000. II. ABSL BSE 500 Momentum 50 Index Fund: This falls under the category of other schemes (index funds). It was launched on 21 July and will close on 4 August. III. ABSL BSE 500 Quality 50 Index Fund: This falls under another scheme (index fund) and was launched on 21 July and will close on 4 August. The minimum subscription amount is ₹ 500. IV. Bajaj Finserv Equity Savings Fund: This is a hybrid scheme (equity savings). It was launched on 28 July and will close on 11 August. The minimum subscription is ₹ 500. V. Bank of India Mid Cap Fund: As the name suggests, this is a mid-cap scheme that was launched on 31 July. The new fund offer will close on 14 August. The minimum subscription amount is ₹ 5,000. VI. Groww BSE Power ETF: This was launched on 18 July and will close on 1 August, which is today. VII. Kotak Active Momentum Fund: This is an equity scheme (sectoral/thematic) that was launched on 29 July and will close on 12 August. The minimum subscription amount is ₹ 5,000. VIII. Kotak Nifty Alpha 50 Index Fund: This scheme was launched on 28 July and will close on 11 August. Minimum subscription amount for this index mutual fund scheme is ₹ 100. IX. Motilal Oswal Special Opportunities Fund: This scheme was launched on 25 July and will close on 8 August. Minimum subscription amount is ₹ 500. X. Zerodha Multi Asset Passive FOF: This scheme was launched on 25 July and will close on 8 August. It falls in the category of FOF domestic. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision. For all personal finance updates, visit here
