Latest news with #GrowwMutualFund
Time of India
25-07-2025
- Business
- Time of India
Mutual fund houses launch over 100 passive funds in 2025. Will Sebi's new rules shift the trend?
Live Events With mutual fund houses launching over 100 passive funds compared to fewer active ones, experts say fund houses see greater growth potential in passive offerings because under current guidelines, only one active fund per category is allowed, while multiple passive funds can be launched — a rule that may change going forward'While passive investment is getting popular, the surge in launches is more AMC-driven rather than from a pure investor preference change. Many times passive funds are advertised as cheaper than active funds, but if active funds are providing higher returns than passive funds, then the difference is still justified as long as the alpha is higher than the savings in expenses,' Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance shared with on July 22, 2025, mutual funds have launched 162 mutual funds of which around 106 were passive funds whereas 56 were active funds. Out of 106 passive funds, there were 53 index funds , 30 ETFs , 21 fund of funds investing domestically, and two debt oriented passive funds.A further deep dive in the data should, Groww Mutual Fund has launched 15 passive funds followed by Kotak Mutual Fund which has launched 13 passive to a report by ETBureau, passive funds tend to shine when markets are efficient and opportunities for stock-picking are scarce. Their low costs give them an edge, but the real kicker comes when market rallies are driven by a handful of heavyweight stocks—think narrow leadership—leaving active fund managers struggling to keep pace, especially when stretched valuations make selective bets goal of an active fund is to outperform a specific benchmark index through strategic investments and market timing. On the other hand, passive funds, also known as index funds, aim to replicate the performance of a specific market index. Instead of trying to outperform the market, passive funds seek to match the returns of the benchmark with fund houses focusing more on passive funds, is this rise a signal that market valuations are making active outperformance more difficult? To this Minocha answers that things are moving towards passive investing in the large cap space mainly because active managers find it very difficult to constantly outperform the index and tend to mirror the index when adjusted for higher TERs.'In mid-and small-cap areas, however, a good fund manager would be able to add alpha because of low market efficiency. A mix of these two strategies works well depending on one's asset allocation and risk appetite,' he market regulator, Sebi , recently proposed to review the categorisation of mutual fund schemes to improve clarity, introduce new schemes and to address the issue of overlap in portfolios of the active funds, there were different proposals based on categories, however for passive funds, the key three proposals were - should MFs be allowed to offer solutions oriented life cycle fund of funds with a target date in the structure?. Secondly, should mutual funds be allowed to offer solution oriented life cycle fund of funds, with a lock in, for other specific goals such as housing, marriage etc?. And lastly, should mutual funds be allowed to offer solutions oriented life cycle fund of funds with different lock-in period such as 3 years, 5 years or 10 years?Sebi has asked for comments/ suggestions to be submitted latest by August 8. If these proposals are accepted, what benefit will active and passive funds have post this?The expert commented that the intent of SEBI is good in rationalising fund offerings, but careful implementation is active funds, Minocha said that the AMCs which have extremely high AUM are able to manage very well without needing a second scheme and an additional launch of funds in the same category could confuse or hurt the morale of existing investors.'The Target Maturity FoF whereby shifting from equity to debt over time may look attractive, but the taxation-as-per-slab-on-maturity perspective may really hurt the long-term investor in the higher tax brackets,' Minocha decision between active and passive funds depends on your investment goals, risk tolerance, and preference for management style. Therefore, one should always consider risk appetite, investment horizon, and goal before making an investment decision.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Time of India
14-07-2025
- Business
- Time of India
NFO Alert: Groww Mutual Fund introduces BSE Power-based passive funds
Groww Mutual Fund has launched two new passive investment schemes: the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF). Both schemes aim to track the BSE Power Index – Total Return Index (TRI), offering investors low-cost exposure to companies in India's power sector. The New Fund Offer (NFO) for both schemes will open for subscription on July 18 and close on August 1, 2025. Also Read | Nearly 112 lakh SIPs closed in 2025: Should you worry about the negative net SIP trend? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » The Groww BSE Power ETF is an exchange-traded fund that seeks to replicate the BSE Power Index by investing in its underlying constituents in the same proportion. The Groww BSE Power ETF Fund of Fund (FoF) is a mutual fund that aims to invest in units of the ETF. Together, these schemes offer two different formats for participating in the same investment theme, according to a press release from the fund house. As per the release, these are India's first power-focused ETF and FoF, designed to capture the sector's evolution via the BSE Power Index – Total Return Index (TRI). Live Events The schemes aim to capitalize on India's evolving electricity landscape, shaped by long-term economic trends, supportive policy measures, and the accelerating momentum in energy transition. The fund house noted that constituents of the BSE Power Index have witnessed their revenues nearly double, and net profits more than triple between 2020 and 2024, indicating improved business fundamentals. Overall, the power sector is undergoing structural reform, supported by long-term tailwinds such as policy initiatives, rising consumption, clean energy adoption, and digital infrastructure. The Groww BSE Power ETF and FoF aim to capture this opportunity through a disciplined, index-based investment approach. The minimum application amount is Rs 500, with no exit load. Both schemes will be benchmarked against the BSE Power Index – TRI and will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar. Also Read | Mazagon Dock and CONCOR among stocks bought and sold by mutual funds in June The Groww BSE Power ETF is suitable for investors seeking long-term capital appreciation through investments in equity and equity-related instruments that are part of the BSE Power Index. On the other hand, the Groww BSE Power ETF FoF is ideal for investors aiming for long-term capital appreciation by investing in units of the Groww BSE Power ETF.
Economic Times
14-07-2025
- Business
- Economic Times
NFO Alert: Groww Mutual Fund introduces BSE Power-based passive funds
Synopsis Groww Mutual Fund has launched two new passive schemes—the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF)—to track the BSE Power Index – TRI. These schemes provide low-cost exposure to India's power sector. The NFO for both funds will be open from July 18 to August 1, 2025. Groww launches India's first power-focused ETF and FoF. Groww Mutual Fund has launched two new passive investment schemes: the Groww BSE Power ETF and the Groww BSE Power ETF Fund of Fund (FoF). Both schemes aim to track the BSE Power Index – Total Return Index (TRI), offering investors low-cost exposure to companies in India's power New Fund Offer (NFO) for both schemes will open for subscription on July 18 and close on August 1, 2025. Also Read | Nearly 112 lakh SIPs closed in 2025: Should you worry about the negative net SIP trend? The Groww BSE Power ETF is an exchange-traded fund that seeks to replicate the BSE Power Index by investing in its underlying constituents in the same proportion. The Groww BSE Power ETF Fund of Fund (FoF) is a mutual fund that aims to invest in units of the ETF. Together, these schemes offer two different formats for participating in the same investment theme, according to a press release from the fund per the release, these are India's first power-focused ETF and FoF, designed to capture the sector's evolution via the BSE Power Index – Total Return Index (TRI). The schemes aim to capitalize on India's evolving electricity landscape, shaped by long-term economic trends, supportive policy measures, and the accelerating momentum in energy fund house noted that constituents of the BSE Power Index have witnessed their revenues nearly double, and net profits more than triple between 2020 and 2024, indicating improved business the power sector is undergoing structural reform, supported by long-term tailwinds such as policy initiatives, rising consumption, clean energy adoption, and digital infrastructure. The Groww BSE Power ETF and FoF aim to capture this opportunity through a disciplined, index-based investment minimum application amount is Rs 500, with no exit load. Both schemes will be benchmarked against the BSE Power Index – TRI and will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar. Also Read | Mazagon Dock and CONCOR among stocks bought and sold by mutual funds in JuneThe Groww BSE Power ETF is suitable for investors seeking long-term capital appreciation through investments in equity and equity-related instruments that are part of the BSE Power Index. On the other hand, the Groww BSE Power ETF FoF is ideal for investors aiming for long-term capital appreciation by investing in units of the Groww BSE Power ETF.
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Business Standard
14-07-2025
- Business
- Business Standard
Groww rolls out BSE Power ETF, FoF amid India's surging electricity demand
Groww Mutual Fund has launched two new passive investment schemes — Groww BSE Power ETF and Groww BSE Power ETF Fund of Fund (FoF) — providing retail investors with a low-cost, index-based route to participate in India's rapidly transforming power sector. 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.
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Business Standard
14-07-2025
- Business
- Business Standard
NFO Alert! Groww MF launches BSE Power ETF; here's all you need to know
Groww BSE Power ETF: Groww Mutual Fund is set to launch the Groww BSE Power ETF, an open-ended scheme tracking the BSE Power Index (TRI). The new fund offer (NFO) will open for subscription on Friday, July 18, 2025 and closes on Friday, August 1, 2025. According to the scheme information document (SID), the investment objective of the scheme is to generate long-term capital growth by investing in securities of the BSE Power Index in the same proportion, to provide returns before expenses that track the total return of the BSE Power Index, subject to tracking errors. However, there can be no assurance that the investment objective of the scheme will be achieved. The Groww BSE Power ETF will be managed passively with investments in stocks in the same proportion as in the BSE Power Index (TRI). The Scheme will invest at least 95 per cent of its net assets in Equity and equity-related instruments of the BSE Power Index (TRI). Some of the key constituents of the BSE Power index include NTPC, Power Grid, Suzlon Energy, Tata Power, Adani Power, Bharat Heavy Electricals, ABB India, Adani Green Energy and Siemens. During the NFO, investors can invest a minimum of ₹500 and in multiples of ₹1 thereafter, with units allotted in whole numbers and any remaining amount refunded. After the NFO, only Market Makers and Large Investors (with transactions over ₹25 crores) can buy or redeem units directly from the Mutual Fund in creation unit sizes. According to the SID, post-NFO, the ETF will be listed on the National Stock Exchange (NSE). If units are redeemed, no exit load will be charged. Nikhil Satam, Aakash Chauhan, and Shashi Kumar are the designated fund managers for the scheme. As per the riskometer, the principal invested in the scheme will be at very high risk. Groww BSE Power ETF: Who should invest? According to the SID, the fund is suitable for investors seeking long-term capital appreciation and investment in equity and equity-related instruments of the BSE Power Index. However, investors should consult their financial advisers if in doubt about whether the product is suitable for them.
