Alike Zerodha, Groww Mutual Fund launches its first NFO following the SEBI clearance

 

This open-ended scheme ‘Groww Nifty Total Market Index Fund’ is expected to invest mostly in equity, with a modest amount of money going into debt and debt market products.

Groww Nifty Total Market Index Fund will work on tracking the Nifty Total Market index. The scheme will invest mostly in equity, with a small sum of money going into debt and debt market instruments. GMF’s co-founder, Lalit Keshre tweeted, “Groww Mutual Fund got approval for its first NFO - Groww Nifty Total Market Index Fund." 

There will be two plans available under this new scheme: the Regular Plan and the Direct Plan. The NFO's open and close dates have not yet been disclosed.

While the Direct Plan is exclusively available to investors who buy or subscribe to units directly, the Regular Plan is for investors who want to route their investment through any distributor. Only a few days have passed since rival Zerodha Asset Management announced the launch of two of its passive index fund schemes ‘Tax Zerodha’ before Groww's index fund debut. 

Nifty Large Midcap 250 Index Funds from Saver (ELSS) and Zerodha are both available.

Groww joined the mutual fund industry earlier this year when it bought Indiabulls Asset Management. In September 2021, the bargain brokerage company gained approval from the competition authorities for the acquisition.

The capital market regulator-imposed regulations earlier this year for what it refers to as execution-only platforms—online marketplaces that offer transactions in direct plans for mutual fund schemes—such as Paytm, Zerodha, and Groww.

- Adarsh Agarwal