Groww Mutual Fund has introduced the Groww Nifty India Railways PSU ETF, aiming to offer retail investors the opportunity to invest in the Indian Railways ecosystem, a fundamental pillar of India’s infrastructure. The NFO period of the scheme is from 16-30 January, 2025

This ETF seeks to replicate the performance of the Nifty India Railways PSU Index -TRI, comprising Public Sector Undertakings (PSUs) essential to the railways sector, spanning infrastructure, financial services, logistics, and technology.

Capitalizing on India’s Growth Story*

Indian Railways is critical to the country’s transportation and logistics ecosystem, with a vast network spanning 68,584 km and over 7,325 stations. It facilitates seamless transportation for 6.7 billion passengers annually—equivalent to the world’s population—and handles 27% of India’s freight movement.

The sector is undergoing a significant transformation, supported by a record ₹2.52 lakh crore in government capital expenditure for FY 2024-25. Initiatives include the transition to safer, more efficient rolling stock, station upgrades, high-speed rail projects, and the adoption of renewable energy solutions like solar installations, aligning with sustainability goals while reducing operational costs.

Varun Gupta, CEO, Groww Mutual Fund, said:

“Indian Railways is integral to India’s infrastructure and economic progress, connecting communities and powering commerce across the country. The Groww Nifty India Railways PSU ETF is an opportunity for investors to engage with a sector that is pivotal to the nation’s infrastructure and reflective of its economic momentum. This launch underscores our commitment to creating opportunities aligned with India’s growth story.”

Why Consider the Groww Nifty India Railways PSU ETF?

Critical Infrastructure Sector

Indian Railways is the backbone of India’s transportation and logistics network, enabling large-scale passenger and freight movement and driving economic activity.

Government-Led Modernization
With a record capital allocation, modernization initiatives include high-speed rail, station redevelopment, and renewable energy adoption. These projects aim to enhance efficiency and align with sustainability goals.

Exposure to the Entire Railways Ecosystem^#

The ETF tracks the Nifty India Railways PSU Index-TRI, offering exposure to core and non-core PSUs. These companies span critical sectors, including construction (26.45%), financial services (17.76%), and consumer services (17.54%).

Growth-Oriented Portfolio

^#The portfolio is weighted towards mid-cap stocks (54.61%), which may offer growth potential in the long term

Driving Economic Growth and Industrial Transformation

Indian Railways plays a pivotal role in supporting industries such as steel, cement, and manufacturing, while generating millions of jobs and creating economic ripple effects across diverse sectors. As a key enabler of India’s $5 trillion economy vision, the railways connect industrial hubs, reduce transit times, and boost exports through transformative initiatives like PM Gati Shakti.

Index Performance

Data suggests that the Nifty India Railways PSU Index has outperformed the Nifty 500 Index

CAGR – Compounded annual growth rate.

Source – NSE, January 02, 2025.  Past performance may or may not be sustained in future and is not a guarantee of any future returns. The above is the performance of the index and does not in any manner indicate the performance of any individual scheme of the mutual fund. Please consult your financial advisor before investing.

Who may consider investing?

This product may be suitable for investors seeking:

●      Long-term capital appreciation

●      Exposure to the railway sector and PSU companies

●      Investment in equity and equity-related instruments of the Nifty India Railways PSU Index

Please read the scheme information document carefully and consult your financial advisor before investing.

Scheme Details

Name of the Scheme	Groww Nifty India Railways PSU ETF
Scheme Type	An open‐ended scheme tracking the Nifty India Railways PSU Index – TRI
Scheme Benchmark	Nifty India Railways PSU Index – TRI
Category	ETF
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 the 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 Manager	Abhishek Jain
Minimum Investment Amount	Rs. 500 and in multiples of Re. 1/- thereafter.
Exit Load	Nil

Sources : *Internal Research from various source