Groww Mutual Fund Launches Housing Finance Schemes

THE PIP (TL;DR)

New options to invest in India’s housing finance sector are now available through Groww Mutual Fund.

• Groww Mutual Fund filed with SEBI to launch two open-ended schemes: the Groww BSE Housing Finance ETF and the Groww BSE Housing Finance Index Fund.
• These schemes aim to track the BSE Housing Finance Index-TRI, offering investors exposure to housing finance companies.
• You now have more avenues to diversify your portfolio into a specific sector with minimal entry and exit costs.

Groww Mutual Fund has taken a significant step by filing offer documents with the Securities and Exchange Board of India (SEBI) for two new open-ended schemes. These new offerings, named the ‘Groww BSE Housing Finance ETF’ (Exchange Traded Fund) and the ‘Groww BSE Housing Finance Index Fund’, will both focus on India’s burgeoning housing finance sector. This move expands the choices available to investors looking to tap into this specific market segment.

Both schemes are designed to benchmark against the BSE Housing Finance Index-TRI, meaning they will aim to replicate the performance of this index by investing in its constituent securities. The objective is to generate long-term capital growth for investors. For those interested, the schemes will provide both a Growth option and an Income Distribution cum Capital Withdrawal option, catering to different investor preferences.

For your personal portfolio, this means a straightforward way to gain exposure to housing finance companies without having to pick individual stocks. The New Fund Offer (NFO) price for the ETF will be 1/1000th of the index value on the allotment date, while the Index Fund units will be priced at ₹10 during its NFO. Importantly, both schemes will feature nil entry and exit loads, making them accessible and cost-effective for investors. The minimum application amount during the NFO is ₹500, and in multiples of Re. 1 thereafter, allowing for flexible investment.

This development from Groww Mutual Fund offers a clear opportunity for diversification, especially if you believe in the long-term growth story of India’s housing sector. By tracking a specific index, these funds provide transparency and a passive investment approach. It’s a reminder that new investment products consistently emerge, broadening the landscape for your Systematic Investment Plans (SIPs) and overall financial strategy.

ONE THING TO CONSIDER TODAY

If you’re considering new investments, now might be a good time to research how a sector-specific fund like these could fit into your existing diversification strategy.