NFO: Groww Nifty India Railways PSU Index Fund

Mutual Fund Investing
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Investment Objective
The investment objective of the Scheme is to generate long term capital growth by investing in securities of the Nifty India Railways PSU Index in the same proportion / weightage with an aim to provide returns before expenses that track the total return of Nifty India Railways PSU Index, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved

Fund Overview
Exit Load Exit load of 1%, if redeemed within 30 days.
Min. SIP Amount â‚ą 100
Min. LumpSum Amount â‚ą 500
Launch Date 16th Jan 2025
End Date 30th Jan 2025
Allotment Date 17th Jan 2025
NAV â‚ą10.00
Stamp Duty 0.005%
Lock in Nil
Scheme Benchmark Nifty India Railways PSU Index - TRI
Risk Very High
Scheme Category Other , Index Fund
Fund Manager Abhishek Jain

AMC Name Groww Asset Management Ltd
RTA KFin Technologies Limited
Total AUM â‚ą 1,218 Crr
Total Schemes 17

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

About Groww Asset Management Ltd.
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

1 Like
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As an individual, I often wonder how fund managers will draw in investors for their new funds, especially when these funds don’t have a performance history to back them up, especially amidst all this excitement around IPOs.

When you consider these figures involved—hundreds and thousands of crores—they might not seem as significant from a higher vantage point. It’s interesting how looking up and looking down at the same situation can offer such different views.

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Indian Railway is one of the most important infrastructure for the development of our economy and country as a whole. It is undergoing a transformation. Government is focusing a lot on the modernisation of Indian Railways and allocating huge budget for the same. 1300+ Smart Stations, 400+ Modern Vande Bharat Trains and upcoming First Bullet train connecting one of the most important economic corridor between Mumbai to Ahmedabad are testament of how much important is being laid on the modernisation of Indian Railway. With this level of focus from the government and overbooked demand from Industries for freight and passengers for travel. Railway as a sector is supposed to experience a boom.

This index captures core companies which will be benefitting from this growth like IRCTC, RAIL Vikas Nigam LTD, IRFC LTD, RITES LTD, IRCON LTD etc. However, As this is a sectoral/thematic category, Risk is higher and only long term investors should look at it

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India operates one of the most extensive rail networks in the world - 3rd highest number of railway stations, 4th longest route length.

Fun Fact - Indian Railways ferry a year’s air traffic in one day!!

Railways is a critical infrastructure sector for the economy - the backbone of passenger travel and logistics in India. With India on the cusp of becoming a developed economy, the demand in passenger and freight transport is expected to increase multifold in the coming decades with passenger traffic set to increase 8-fold by 2047 and freight volumes expected to reach $500 Bn by 2030!

To be able to cater to this huge surge in demand, the Govt has come-up with a grand vision of the complete transformation of the Indian railways. This can also be seen from the record high budget allocation of Rs 2.62 Lakh Cr for FY 2024-25, as well as the ambitious targets on both the freight as well as the passenger side.

Some targets / initiatives -

  • National Rail Plan 2030 - to create capacity ahead of demand and increase the share of railways in freight transportation from 27% to 45% by 2030
  • Creation of Dedicated Freight Corridors - rail networks that are strategically established to make movement of goods faster, cost-effective
  • Reduce logistics costs to 8% of the country’s GDP, from the current 13-15%
  • Track expansions and upgradations for 44,000+ kms, costing Rs. 7.44 lakh crore
  • Modernize over 1,300 railway stations
  • Launch and expansion of semi high speed and high speed trains like the Vande Bharat, the Bullet train for passengers etc.
  • Improve safety through Kavach - Train Collision Avoidance System (TCAS)

The sector is undergoing a major transformation and offers a unique investment opportunity.

Why Invest in the Groww Nifty India Railways PSU Index Fund ?

  • Critical sector of the economy with continued focus and investment from the Government to achieve the twin goals of modernisation and efficiency
  • India’s first and only Railways PSU fund - a unique opportunity to gain exposure to some core Railways PSU stocks with high growth potential
1 Like
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List of Important railway sector companies in India might catch attention as we approach the Union Budget for 2025.

IRCTC.
Texmaco Rail.
Indian Railway Finance Corporation (IRFC).
Titagarh Rail Systems.
Rail Vikas Nigam Ltd (RVNL).
Jupiter Wagons.