Groww Mutual Fund Launches New NFO with ₹500 Minimum Investment
This momentum index-based fund is designed for long-term wealth growth.
Groww Mutual Fund: Groww Mutual Fund has launched a new flexi-cap fund in the equity segment: Groww Nifty 500 Momentum 50 ETF. This fund presents a potentially excellent option for long-term wealth creation. The subscription opened on March 3rd and will remain open until April 17th, 2025. It is an open-ended scheme with the Nifty 500 Momentum 50 TRI as its benchmark index.
₹500 Minimum Investment: Who is this Fund For?
The minimum investment amount for Groww Nifty 500 Momentum 50 ETF is ₹500, with subsequent investments allowed in multiples of ₹1. There is no exit load associated with this scheme. The fund manager is Nikhil Satam, who will oversee the scheme's management.
The primary objective of this plan is to generate long-term capital gains by investing proportionally in securities from the Nifty 500 Momentum 50 Index. The fund aims to track the total return of the Nifty 500 Momentum 50 Index; however, there is no guarantee that the investment objective will be fully achieved.
Groww Nifty 500 Momentum 50 ETF Investment Strategy
According to the fund house, this fund will be passively managed. Investments will be made in the same proportion as the constituent shares of the Nifty 500 Momentum 50 Index. The core strategy focuses on minimizing tracking error.
- The portfolio will be regularly rebalanced.
- Investments may also be made in debt and money market instruments.
- Investments in other mutual fund schemes are possible.
- The scheme's strategy will align with asset allocation.
However, the AMC/sponsor/trustee does not guarantee that the scheme's investment objective will be fully realized. There is no guaranteed return on this scheme.
What is a Momentum Index Fund?
A momentum index fund invests in stocks that have recently experienced a sharp price increase, indicating b stock price momentum. This strategy is based on the premise that stocks exhibiting b upward trends may continue to perform well in the future.
The momentum investing strategy operates on this simple principle:
- Stocks going up tend to continue going up.
- Stocks going down tend to remain down for a period of time.
Reasons to Invest:
- Aids long-term wealth creation.
- Opportunity to start investing with as little as ₹500.
- Lower risk due to passive fund management.
- Strategy focused on minimizing tracking error.
- Opportunity for growth aligned with the Nifty 500 Momentum 50 Index.
