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The investment objective of the scheme will be to generate long term capital growth by investing in securities of the Nifty EV & New Age Automotive Index in the same proportion / weightage with an aim to provide returns before expenses that track the total return of Nifty EV & New Age Automotive Index, subject to tracking errors.
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The performance of the scheme will be benchmarked against Nifty EV and New Age Automotive Index - Total Return Index. The scheme will be managed by Abhishek Jain.
The exit load will be nil. The minimum investment amount will be Rs 500 and in multiples of Re 1 thereafter. Units will be allotted in the whole figures and the balance amount will be refunded, Even if it falls below the minimum amount.
The scheme will invest 95-100% in equities and equity-related securities of companies engaged in or expected to benefit from Electric Vehicles & New Age Automotive Themes, and 0-5% in money market instruments / debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.
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The Groww Nifty EV and New Age Automotive ETF will be managed passively with investments in stocks in the same proportion as in the Nifty EV and New Age Automotive Index. The investment strategy of the scheme will be to invest in a basket of securities forming part of Nifty EV and New Age Automotive Index in similar weight proportion. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the Index as well as the incremental collections/redemptions in the scheme.
The scheme will be suitable for investors who are seeking long-term capital appreciation and want investment in equity and equity-related instruments of the Nifty EV & New Age Automotive Index. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.
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Subscribe to The Economic Times Prime and read the ET ePaper online.