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.