Groww BSE Hospitals ETF | Growth

📌 Fund Snapshot & Key Details (Master Table)

⚖️ Sahifund NFO Review

PLUS

• Pure-play exposure to India’s hospital and healthcare delivery segment
• Structural tailwinds from rising healthcare demand, insurance penetration and medical tourism
• Strong long-term index performance (5Y CAGR ~32%)
• Passive ETF structure ensures transparency and low churn
• Zero exit load allows tactical and long-term flexibility

MINUS

• Extremely high valuations (P/E ~60, P/B ~10) reduce margin of safety
• Highly concentrated index – top 10 stocks form ~95% weight
• Single-sector exposure increases volatility and drawdown risk
• Sensitive to regulatory changes, pricing caps and policy interventions
• Not suitable as a core equity allocation

Sahifund View (Decisive Line)

A high-risk, high-conviction sectoral ETF, suitable only as a tactical or satellite bet on India’s hospital growth story.

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⏱️ Last Updated: 6 February 2026, 10.00 AM

📊 Sahifund Interpretation of the Benchmark

BSE Hospitals TRI

The BSE Hospitals TRI tracks hospital companies drawn from the BSE 1000 universe, weighted by float-adjusted market capitalisation with a stock cap of 20%. The index represents India’s organised hospital and healthcare services ecosystem.

Benchmark Behaviour Snapshot

• Long-term returns have been exceptional, driven by earnings growth and valuation expansion
• High volatility (annualised risk ~19–21%) reflects sector concentration
• Performance tends to be cyclical, with sharp rallies followed by consolidation phases
• Drawdowns can be deep when valuations correct or policy risks emerge

Sahifund Insight:
This benchmark rewards early entry and patience, but punishes investors who enter at valuation extremes.

🧠 Investment Strategy – Explained Simply

The scheme aims to replicate the BSE Hospitals Index (TRI), investing in the same stocks and proportions, subject to tracking error.

In simple terms:
➡️ This ETF mirrors India’s hospital sector—when hospitals grow profits, the fund benefits; when valuations cool, returns can stall.

👤 Sahifund Interpretation of Fund Managers & Their Performance

Aakash Ashokkumar Chauhan

Strong ETF and index execution experience across Trust MF and capital markets. Focuses on replication accuracy and liquidity management.

Nikhil Satam

Background in financial markets and ETF operations. Adds operational efficiency and tracking discipline.

Shashi Kumar

Experience across insurance and AMC operations strengthens compliance and risk controls.

Sahifund Assessment:
As a passive ETF, index behaviour and tracking efficiency will dominate outcomes—not individual fund manager alpha.

🎯 Suitable for Which Investors?

Suitable if you:

• Believe strongly in India’s long-term healthcare and hospital growth story
• Already have diversified equity funds
• Can tolerate sharp volatility and interim drawdowns
• Want a tactical or satellite sector allocation

Avoid if you:

• Prefer valuation comfort and downside protection
• Are conservative or first-time equity investors
• Already have high exposure to pharma / healthcare stocks
• Expect steady or predictable returns

❓ Should You Invest in This NFO?

Yes, but very selectively.

This NFO fits best as a small satellite allocation for investors who understand sector cycles and are comfortable with valuation risk. It should not be treated as a core holding.

Final Word:
A focused healthcare delivery play—powerful in the long run, but unforgiving at the wrong entry point.

⚠️ Disclaimer

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.