Groww launches India`s first Nifty Non-Cyclical Consumer Index Fund
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Groww Mutual Fund (Groww’s AMC business) has announced the NFO launch of India’s first Nifty Non-Cyclical Consumer Index Fund - “Groww Nifty Non-Cyclical Consumer Index Fund”. This is an open-ended scheme tracking Nifty Non-Cyclical Consumer Index–TRI, and the New Fund Offer (NFO)of the scheme is from 2nd May 2024 to 16th May 2024. Mr. Abhishek Jain will manage the scheme.
The fund aims to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI) in the same proportion/weightage. This is to offer returns before expenses that track the total return of the Nifty Non-Cyclical Consumer Index (subject to tracking errors). Investors should consult their financial advisor investor before investing in the fund.
The scheme will be benchmarked against the Nifty Non-Cyclical Consumer Index (Total Return Index). The index selection is structured such that the largest companies (by market cap) from the selected industries are part of the index. The index, therefore, is a collection of some of the most loved consumer brands in the country today. Companies with consumer brands that are seen, and used daily, which have built trust over a long period of time. Because of the continued spending of consumers into these products, these companies tend to be slightly more insulated from economic cycles and therefore are seen as non-cyclical sectors. (https://www.niftyindices.com/indices/equity/thematic-indices/nifty-non-cyclical-consumer)
The index forming these companies has shown more resilience than the broader market, during market volatility. Data shows that Nifty Non-Cyclical Consumer Index has also performed in comparison to Nifty 50 over 1, 3, 5, 10 and even 15 year time frames
Harsh Jain, Co-founder and COO, Groww said, "The Groww Nifty Non-Cyclical Index fund is India’s first index fund, which enables people to invest in the top stocks from consumer industries such as FMCG, Textiles, etc., These companies manufacture items we need in our daily lives and tend to be slightly more insulated from economic cycles and therefore are seen as non-cyclical sectors.
This fund is tailored for investors who desire long-term, consistent wealth creation by investing in the top consumer brands seen and utilised by people across India.”
Key attributes of the NFO:
The minimum investment amount will be Rs. 500 and in multiples of Re 1 for purchases and of Re 0.01 for switches. For SIP, the minimum amount is Rs. 1,200 (subject to a minimum of 12 SIP instalments of Rs. 100 each for monthly instalments and Rs. 300 for quarterly instalments).
The scheme will invest 95-100% in equities and equity-related securities of companies engaged in or expected to benefit from consumption and consumption-related activities and 0-5% in debt and money market instruments /and units of debt schemes/units of debt ETFs.
In respect of each purchase/switch-in of units, an exit load of 1% is payable if units are redeemed/switched out within 30 days from the date of allotment. No exit load is payable if units are redeemed/switched out after 30 days from the date of allotment.
The Nifty Non-Cyclical Consumer Index aims to track the performance of a portfolio of stocks that largely denote the Non-Cyclical Consumer theme within basic industries such as Consumer
Goods, Consumer Services, Telecom, Services, Media, Entertainment, Publication, Textiles, and others. Investors should read Scheme Information Document/Key information Memorandum before investing in the Scheme(https://www.growwmf.in/downloads/sid)
Investors can start investing in the Groww Nifty Non-Cyclical Consumer Index Fund from May 2nd to May 16th via any mutual fund investing platform or directly through Groww Mutual Fund.
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