“Groww Mutual Fund got approval for its first NFO – Groww Nifty Total Market Index Fund,” tweeted Co-founder, Lalit Keshre.
Groww Nifty Total Market Index Fund is an open-ended scheme, tracking the Nifty Total Market index.
The scheme will predominantly invest in equity, while a small portion of funds will be invested in debt and debt market instruments.
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Under this new scheme, there will be two plans namely, Regular Plan and Direct Plan. The open and close dates of the NFO are yet to be announced.
A regular plan is for investors who wish to route their investment through any distributor, while the direct plan is only for investors purchasing/subscribing to units directly.
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The index fund launch by Groww comes just a few days after its rival Zerodha Asset Management announced the launch of two of its passive index fund schemes Zerodha Tax
Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund.
Groww entered the mutual fund business through the acquisition of Indiabulls Asset Management earlier this year. The discount broking firm received approval from the competition watchdog for the acquisition in September 2021.
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Several discount broking firms are getting into the booming asset management business with growing investor participation in markets.
Angel One also received approval from Sebi in February to launch its mutual fund business. The company hopes to start operations in 2024.
Earlier this year, the capital market regulator issued regulations for online platforms like Paytm, Zerodha, and Groww that offer transactions in direct plans for mutual fund schemes, which it calls execution-only platforms.
