Mutual Fund NFO : Groww Gilt Fund

Mutual Fund Investing
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Investment Objective
The objective of the Scheme is to generate credit risk-free returns by predominantly investing in sovereign securities issued by the Central Government and/or State Government(s) and/or any security guaranteed by the Government of India, and/or reverse repos in such securities as per applicable RBI Regulations and Guidelines. The Scheme may also be investing in Reverse repo, Triparty repo on Government securities or treasury bills and/or other similar instruments as may be notified from time to time. However, there is no assurance that the investment objective of the Scheme will be achieved.

Fund Overview
Exit Load No charges for withdrawal
Min. SIP Amount â‚ą 500
Min. LumpSum Amount â‚ą 500
Launch Date 23rd Apr 2025
End Date 7th May 2025
Allotment Date 15th May 2025
NAV â‚ą10.00
Stamp Duty 0.005%
Lock in
Scheme Benchmark CRISIL Dynamic Gilt Index
Risk Moderate
Scheme Category Debt , Gilt Fund
Fund Manager Kaustubh Sule

AMC Name Groww Asset Management Ltd
RTA KFin Technologies Limited
Total AUM â‚ą 1,288.60 cr
Total Schemes 19

How to apply for this NFO?
To apply for this New Fund Offer (NFO), download the Dhan App today!

About Groww Mutual Fund
In 2016, four former Flipkart employees – Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh – set out to simplify investing. They launched Groww in 2017 as a direct mutual fund distribution platform. By 2020, Groww expanded its offerings to include equities, digital gold, ETFs, intraday trading, and IPOs in response to user demand.

In 2021, Groww acquired Indiabulls AMC for Rs 175 crore, using Rs 100 crore from cash equivalents. By 2023, Groww had fully acquired and rebranded Indiabulls AMC as Groww AMC. Currently, Groww AMC offers schemes under the Equity, Debt, ELSS, Index and Hybrid categories.

As of March 2024, Groww manages assets worth around Rs 658.50 crores. The AMC is led by CEO Mr. Varun Gupta, with Mr. Hemant Zaveri as the compliance officer and Mr. Krishnam Thota as the investor service officer. Groww AMC is sponsored by Groww Invest Tech Pvt. Ltd., with KFin Technologies Ltd. as the registrar and transfer agent, and HDFC Bank Ltd. as the custodian and accountant. The statutory auditor is M/s S.R. Batliboi & Co.

You can explore more Mutual Funds offered by Groww Mutual Funds here

Happy Investing,
Saurav Parui.

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Do Gilt Funds offer an underrated edge to traders?

Given that Gilt Funds primarily invest in government securities and carry minimal credit risk, they can be a relatively safer way to park capital when markets are volatile. For active traders, there’s also the added benefit of using Gilt Funds as collateral for margin through pledging—allowing capital to remain invested while still supporting trades.

Unlike equity, where value can erode sharply in drawdowns, Gilt Funds—especially short-duration ones—tend to hold up better during periods of uncertainty. Could this make them a better capital allocation choice for traders over idle cash or even equity mutual funds?

What are your thoughts?

@thisisbanerjee @t7support @hachiko @Ankit_Tomar @Kaustubh_Groww_AMC

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My sense after looking at the expected rate cut is that it becomes even more attractive from a 1-3 year expected returns perspective

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Gilt funds have interest rate risk. They give the best returns during a falling phase of the interest rate cycle.

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Gilt funds have interest rate risk compared to 1D overnight funds. At the same time they give more returns since fund managers also make returns using arbitrage opportunities available in market.

@RahulDeshpande,

What’s the haircut at Dhan for Gilt MF/ETFs on pledge?

Can you please list down the best debt funds for pledging at Dhan?

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Gilt Funds are strategic or market opportunities funds with aim to capture opportunities in interest rate cycle. Typical investment period is2-3 years.

Given favourable macroeconomic factors it can form some part of portfolio.

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I can’t comment on which are the best debt funds for pledging, since that really depends on your strategy and risk preferences. But you can find the complete list of approved instruments along with their respective haircuts here:

This should help you evaluate and choose the right debt funds or Gilt ETFs for pledging based on up-to-date information.

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Checkout for liquidity. Select only the one which has low bid-ask spread. This will help you to enter and exit quickly without much slippage.

There are some Gilt funds which are not liquid enough.

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I guess it may also increase haircut for those funds on pledge.