Groww Mutual Fund has announced the launch of the Groww Nifty Smallcap 250 Momentum Quality 100 ETF, an open-ended exchange-traded fund tracking the Nifty Smallcap 250 Momentum Quality 100 Index – TRI, subject to tracking error.
The new fund offer or NFO of the scheme is open for subscription and will close on June 12. The fund will reopen for continuous sale and repurchase on June 29.
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The ETF aims to provide investors with a passive and rules-based way to gain exposure to India’s small-cap segment through a combination of momentum and quality factors.
The momentum factor focuses on companies showing relatively higher price trends based on the index provider’s methodology.The quality factor focuses on companies with relatively better fundamentals and financial characteristics, which have historically shown relatively lower drawdowns across market cycles.
The scheme offers a passive and systematic route for gaining exposure to small-cap companies screened for momentum and quality characteristics through a diversified portfolio structure, subject to market risks and tracking error.
The performance of the fund will be benchmarked against the Nifty Smallcap 250 Momentum Quality 100 Index – TRI and will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar.
The exit load will be nil, and the minimum investment amount will be Rs 500. The fund is suitable for investors who are seeking long -term capital appreciation and investment in equity and equity-related instruments of the Nifty Smallcap 250 Momentum Quality 100 Index.
Under normal circumstances, the fund will allocate 95-100% to equity and equity-related securities of companies constituting the Nifty Smallcap 250 Momentum Quality 100 Index and 0-5% to money market instruments/debt securities.
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