January 8, 2025
mayank
Groww Nifty India Railways PSU ETF details, Fund Portfolio, Fund Returns, Peer Comparison, Mutual Fund Guidance @sahifund.com
Table of Contents:
- NFO Open date, Close date
- NFO Investment Strategy
- NFO Basic Details
- NFO Benchmark Index
- Performance Review of Fund Manager
- Should You Invest in this NFO?
- Invest Online
What is the Groww Nifty India Railways PSU ETF Open Date, Close Date?
NFO opens on January 16, 2025
NFO will close on January 30, 2025
Investment Strategy for this NFO?
The scheme seeks 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.
Basic Details
| Fund House | Groww Mutual Fund |
| Issue Open | 16 January 2025 |
| Issue Close | 30 January 2025 |
| Type | Open-ended |
| Category | Equity: Thematic-PSU |
| Min. Investment(Rs) | 500 |
| Plans | Growth |
| Lock-in Period | NA |
| Exit Load | 0 |
| Riskometer | Very High |
| Benchmark | Nifty India Railways PSU TRI |
About Benchmark Index for this NFO?
NSE Indices has developed the Nifty India Railways PSU Index which aims to track the performance of PSUs from the Nifty 500 which are either owned by the Ministry of Railways (classified as core group) or cater to the Indian Railways (classified as non-core group). The weight of each stock in the index is based on its free-float market capitalization.
Nifty India Railways PSU Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: Nifty India Railways PSU Total Returns Index.
Portfolio Characteristics
| Methodology | Periodic Capped Free Float |
| No. of Constituents | 14 |
| Launch Date | November 25, 2024 |
| Base Date | April 01, 2021 |
| Base Value | 1000 |
| Calculation Frequency | End of day |
| Index Rebalancing | Semi-Annually |
Fund Managers of Groww Nifty India Railways PSU Exchange Traded Fund
1) Abhishek Jain
Education: Mr. Jain has done BA, CA
Experience: Prior to joining Groww MF he was associated with Edelweiss Tokio Life Insurance, Acko General Insurance and Shriram Asset Management Co Ltd.
AMC
Groww Asset Management Limited
Address: 505 – 5th Floor, Tower 2B, One World Centre, Near Prabhadevi Railway Station, Lower Parel, Maharashtra Mumbai – 400013
Website: http://growwmf.in
Registrar & Transfer Agent:
KFin Technologies Ltd.
Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad – 500016
Website: https://mfs.kfintech.com/mfs/
Review for Groww Nifty India Railways PSU ETF @ sahifund.com by Paresh Gordhandas, C.A., Research Analyst
[ A ] Benchmark Performance of Nifty India Railways PSU TRI
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | -13.97 | 25.42 | 25.42 | 43.54 | |
| Total Return | -13.69 | 26.81 | 26.81 | 46.55 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 37.03 | 27.60 | |
| Beta (NIFTY 50) | 1.56 | 1.06 | |
| Correlation (NIFTY 50) | 0.59 | 0.54 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 30.22 | 4.11 | 1.4 |
Top constituents by weightage
| Company’s Name | Weight(%) |
| Indian Railway Finance Corporation Ltd. | 19.35 |
| Rail Vikas Nigam Ltd. | 17.44 |
| Indian Railway Catering And Tourism Corporation Ltd. | 17.25 |
| Container Corporation of India Ltd. | 15.78 |
| NTPC Ltd. | 6.93 |
| IRCON International Ltd. | 5.09 |
| Bharat Electronics Ltd. | 4.60 |
| Oil & Natural Gas Corporation Ltd | 4.08 |
| RITES Ltd. | 2.84 |
| Railtel Corporation Of India Ltd. | 2.57 |
Note on Benchmark Performance:
Groww Mutual Fund is one of the fastest-growing fund houses at present. To tap into the demand for railway stocks, the fund house has strategically launched an NFO. Railway stocks have delivered impressive returns over the past two years. For instance, the Nifty India Railways PSU Index has posted a return of 46.55% since its inception and 26.81% over the past year.
However, we believe that railway stocks are currently trading at high valuations. The PE ratio of the benchmark index stands at 30.22, and we are concerned that these stocks may not meet investors’ high growth expectations due to various factors.
[ B ] Performance Review of the Fund Managers of this NFO
Past Performance of Abhishek Jain
| Fund | Groww Nifty Smallcap 250 Index Fund | It’s Benchmark | Groww Nifty EV & New Age Automotive ETF | It’s Benchmark |
| 1 Year | — | — | — | — |
| 3 Year | — | — | — | — |
| 5 Year | — | — | — | — |
| 7 Year | — | — | — | — |
| 10 Year | — | — | — | — |
As on 8-01-2025
Note on Fund Managers’ performance
We believe that evaluating the past performance of fund managers is a crucial factor in deciding whether to invest in an NFO. However, in this case, we were unable to identify any other schemes managed by this fund manager at the fund house.
[ C ] Conclusion
Considering both of the above aspects, we recommend this NFO primarily to investors who have a strong interest in railway stocks and are expecting strong returns. For others, we do not foresee above-average returns from this NFO.
Is it good to invest in Groww Nifty India Railways PSU ETF NFO?
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