Groww MF launches first-ever ETF tracking Indian railways PSU Index

This ETF replicates the Nifty India Railways PSU Index-TRI, featuring PSUs vital to the railways sector, covering infrastructure, financial services, logistics, and technology

Groww Mutual Fund has launched India’s first exchange-traded fund (ETF) focused on the railway sector, the Groww Nifty India Railways PSU ETF. The New Fund Offer (NFO) will be open for subscription from January 16 to January 30, 2025.

 

The ETF aims to track the Nifty India Railways PSU Index-TRI, providing investors exposure to public sector undertakings (PSUs) crucial to India’s railway ecosystem. The portfolio spans multiple sectors, with significant allocations to construction (26.45 per cent), financial services (17.76 per cent), and consumer services (17.54 per cent).

 

“Indian Railways is integral to India’s infrastructure and economic progress, connecting communities and powering commerce across the country. The Groww Nifty India Railways PSU ETF is an opportunity for investors to engage with a sector that is pivotal to the nation’s infrastructure and reflective of its economic momentum,” said Varun Gupta, CEO of Groww Mutual Fund. 

 

The launch comes at a time when the Indian Railways sector is undergoing significant transformation, backed by a substantial government capital expenditure of Rs 2.52 trillion for FY 2024-25. The railways network, spanning 68,584 km with over 7,325 stations, serves 6.7 billion passengers annually and handles 27 per cent of India’s freight movement.

 

The ETF’s portfolio is weighted towards mid-cap stocks (54.61 per cent), potentially offering growth opportunities for long-term investors. The scheme will be managed by Abhishek Jain and requires a minimum investment of Rs 500 and in multiples of Re. 1 thereafter. 

 

Scheme details  

 

Scheme Type: An open‐ended scheme tracking the Nifty India Railways PSU Index - TRI.

 

Scheme Benchmark: Nifty India Railways PSU Index - TRI

  Category: ETF

 

Investment objective: The investment objective of the Scheme is to generate long-term capital growth by investing in securities of the Nifty India Railways PSU Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of the Nifty India Railways PSU Index, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

 

Exit load: Nil

 

Why should you consider the Groww Nifty India Railways PSU ETF?

 

Focus on critical infrastructure: Indian Railways forms the backbone of the nation’s transportation and logistics network, playing a vital role in large-scale passenger and freight movement, thereby driving economic growth.

 

Government-driven modernisation efforts: With record-breaking capital allocations, modernisation initiatives are underway, including high-speed rail projects, station redevelopment, and renewable energy integration. These measures aim to boost operational efficiency and support sustainability objectives.

 

Comprehensive exposure to the railways ecosystem: The ETF mirrors the Nifty India Railways PSU Index-TRI, providing diversified exposure to both core and ancillary public sector units (PSUs). These companies operate across key sectors such as construction (26.45 per cent), financial services (17.76 per cent), and consumer services (17.54 per cent).

 

A growth-oriented investment: The portfolio leans towards mid-cap stocks (54.61 per cent), potentially offering significant long-term growth opportunities.