Groww files for Nifty EV & New Age Automotive FOF with SEBI

The scheme aims to generate long-term capital growth by investing in securities that are part of the Nifty EV & New Age Automotive Index

Groww Mutual Fund has filed draft documents with the Securities and Exchange Board of India (Sebi) for launching the Groww Nifty EV & New Age Automotive ETF FOF (Fund of Fund). The proposed fund aims to generate long-term capital growth by investing in securities that are part of the Nifty EV & New Age Automotive Index.

 

The benchmark index for this ETF is the Nifty EV and New Age Automotive Index – Total Return Index (TRI). The scheme falls under the category of Other Schemes – Exchange Traded Fund (ETF). The investment team will primarily use a top-down approach for taking interest rate view, sector allocation along with a bottom up approach for security/instrument selection. The fund will be managed by Abhisek Jain.

 

The minimum application amount for a lump-sum purchase will be Rs 500, with increments in multiples of Re 1 for purchases and Re 0.01 for switches. For SIP investments, the minimum application amount will be Rs 1,200, requiring a minimum of 12 SIP instalments of Rs 100 each for the monthly option, and four SIP instalments of Rs 300 each for the quarterly option.

If you wish to redeem within 30 days from the date of allotment 1 percent exit load will be applicable. After 30 days from the date of allotment no exit load will be applicable.

 

The fund will allocate 95-100 per cent of its assets to equity and equity-related securities of companies engaged in or expected to benefit from electric vehicles and new-age automotive themes. 0-5 per cent will be invested in money market instruments, debt securities, and units of debt/liquid schemes of domestic mutual funds.

 

Who should invest

 

This fund is for investors who want to:
 

Investment predominantly in units of Groww Nifty EV & New Age Automotive ETF.

Earn from long-term capital appreciation.

 

The launch of the Groww Nifty EV & New Age Automotive ETF FOF comes at a time when the electric vehicle and new-age automotive sectors are gaining traction globally, driven by factors such as increasing environmental awareness, government incentives, and technological advancements.