Listen to this article
Groww MF has launched its first scheme post-acquisition of Indiabulls MF. What are your top three priorities?
In the past months, we focused on aiming to set up a stable business by building the right team, scaling processes and implementing efficient technology/tools.
Now, our emphasis is to create value for the entire MF ecosystem by focusing on:
- Aiming to create a wide product suite for wide needs
- Ensuring these products reach the masses and are available to the masses via our distribution partners and
- Helping investors by aiming to create consistent wealth in the long run
How will you differentiate yourself in the Rs. 48 lakh crore MF industry?
In the current landscape, it is observed that many investors still remain underserved. This gives us the opportunity to reach out to them by innovating the investment process.
We will look at serving India's diverse investment needs and come up with schemes in line with the market demands, of course with applicable regulations considered. We aim to introduce unique, tailored investment schemes and expand the reach of our mutual fund offerings.
Also, we are constantly improving our efficiency at each touchpoint by leveraging technology and also have in place robust risk management that has the potential of creating wealth for investors in the long run.
Your first launch is Groww Nifty Total Market Index Fund. Why passives? And why a multi-cap index fund now?
As investment managers, we strive to provide funds that suit varying investor needs instead of force-fitting a certain investing ideology. In this context, we believe both active and passive products cater to the different needs of diverse investors. Hence, we will launch both of these products in the coming future.
Talking about Groww Nifty Total Market Index Fund, the scheme aims to give access to the entire market and thus can be inferred that it gives an opportunity to participate in India’s economic growth.
Also, you should not look at it as a multicap category fund but as an index fund.
The Nifty Total Market Index consists of 750 stocks. This may overwhelm those who fear excessive diversification. What is your message for them?
There is no standard definition of what constitutes the ‘ideal’ number of stocks. For instance, the Nifty 100 index contains 100 stocks and the Nifty Large and Midcap Index contains 150 stocks.
In fact, having approximately 750 stocks might enable investors to have high market coverage and a good level of diversification.
Many times, investors own different mutual funds of similar categories, for example, 3 large cap funds or 5 small cap funds. While they may think this is diversification, in reality, it is not. Thus, Groww Nifty Total Market Index Fund seeks to ensure wide diversification across sectors and market caps in one go. You may refer to our Scheme Information Document to know in detail.
Also, it is always advisable to consult your financial advisor before investing so that you can make an informed investment decision.
Who are the ideal investors for Groww Nifty Total Market Index Fund?
Investors exhibiting these four traits may consider investing in Groww Nifty Total Market Index Fund based on their risk appetite and suitability:
- Seeking long-term capital appreciation
- Looking to invest in India’s growth potential
- Seeking a diversified portfolio
- Looking to invest in passively managed schemes
What makes Groww Nifty Total Market Index Fund unique and a must-have fund in an investor’s portfolio?
Groww Nifty Total Market Index Fund aims to give investors exposure to almost the entire market in one go. Through this, investors may not miss out on any sector that performs well in the future. Also, it simplifies the entire investment process as you don’t have to pick and choose any specific sectors, you may own India’s total market* via one fund and participate in India’s growth.
