Financial services firm Groww has received the market regulator's approval to launch a non-cyclical index fund, the company said Wednesday. This is the first scheme in the segment to be launched in India, the company said.
Abhishek Jain, who handles Groww Nifty Total Market Index Fund and Groww Nifty Smallcap Index 250 Index Fund, will be the fund manager of the scheme, according to the draft filed with Securities and Exchange Board of India.
Groww Mutual Fund is expected to launch the new fund offering for the Nifty Non-Cyclical Consumer Index Fund in the first week of May. It will be an open-ended scheme benchmarked to the Nifty Non-Cyclical Consumer Index-TRI (Total Return Index).
The minimum investment amount for the NFO will be Rs 500 and in multiples of Rs 1 for purchases and of Rs 0.01 for switches. Minimum lump sum investments of Rs 500 and minimum SIP investment of Rs 100 can be made into the fund.
The scheme will aim to track the performance of a portfolio of stocks that broadly represent the non-cyclical consumer theme. Non-cyclical stocks outperform their respective sector in the stock market despite economic instability.
The aim of the fund is to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index in the same proportion to offer returns, the company said.
(With PTI inputs)
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