Groww, a financial services company, has recently received approval from the Securities Exchange Board of India (SEBI) to launch the Nifty Non-Cyclical Consumer Index Fund through a new fund offering (NFO). This will be India’s first non-cyclical index fund and is set to go live in the first week of May. The minimum investment amount for the NFO is ₹500, with subsequent purchases and switching in multiples of ₹1, and redemption starting at ₹500 and in multiples of ₹1 thereafter.
The Nifty Non-Cyclical Consumer Index Fund aims to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI) in the same proportion to track the total return of the index, with potential tracking errors. Groww, which acquired the mutual fund business of Indiabulls Housing Finance last year for ₹175.6 crore, is excited to introduce this new investment opportunity to its customers.
A non-cyclical consumer index fund focuses on companies that offer essential goods and services, which tend to have stable demand regardless of economic cycles. These funds aim to protect against market volatility by investing in industries like utilities, healthcare, and consumer staples. The Nifty Non-Cyclical Consumer Index Fund is benchmarked against the Nifty Non-Cyclical Consumer Index (Total Return Index), which includes top 30 stocks from sectors such as consumer goods, services, and telecom.
In summary, Groww’s upcoming launch of the Nifty Non-Cyclical Consumer Index Fund represents an innovative investment option for those looking to diversify their portfolios with a focus on stable, non-cyclical industries.