New NFO: Groww Mutual Fund launches Nifty 500 Low Volatility 50 ETF

#GrowwNifty500LV50ETF

Chandigarh: The ETF will track the Nifty 500 Low Volatility 50 Total Return Index. This index picks 50 stocks with the lowest volatility from the broader Nifty 500 index.

Groww Mutual Fund has launched a new exchange-traded fund (ETF) — the Nifty 500 Low Volatility 50 ETF — to offer investors a way to gain from stable, low-volatility stocks. The new fund offering (NFO) opened on July 29, 2024, and will close on August 2, 2024.

The ETF will track the Nifty 500 Low Volatility 50 Total Return Index. This index picks 50 stocks with the lowest volatility from the broader Nifty 500 index. Volatility is calculated based on the standard deviation of daily price returns over a one-year period.

Groww Mutual Fund aims to provide a product that reduces downside risks while still offering equity exposure. The ETF follows a free-float market capitalisation weighting method. It seeks to appeal to long-term investors
This is Groww Mutual Fund’s third passive ETF launch. The fund house earlier introduced the Nifty Total Market Index ETF and the Nifty Non-Cyclical Consumer Index ETF, expanding its suite of low-cost passive investing options.

Mukesh Kumar Gupta will manage the scheme. Once listed, investors can buy or sell units of the ETF through the National Stock Exchange (NSE).

The fund house said the product is suitable for investors with a moderate risk appetite and a long-term investment horizon. As with all ETFs, the returns will closely match the performance of the underlying index, subject to tracking error.