Groww Mutual Fund Files Draft With SEBI for Money Market Fund

Groww Mutual Fund has filed draft papers with the SEBI for the launch of the Groww Money Market Fund. The scheme is an open-ended debt fund investing in money market instruments with maturities of up to one year. It is categorised under money market funds and carries low interest rate risk with moderate credit risk.

Investment Objective

The primary objective is to generate regular income by investing in a portfolio of money market instruments. The scheme does not guarantee the achievement of this objective. Eligible investments include treasury bills, commercial papers, certificates of deposit, repos, government securities maturing within one year, and other permitted short-term instruments.

Asset Allocation

The fund may invest up to 100% of assets in money market instruments. As per SEBI guidelines, at least 10% of net assets must remain in liquid assets such as cash, government securities, and repos. The scheme will also maintain liquidity ratios based on redemption risk, as specified under regulatory norms.

Offer Details

Units during the New Fund Offer (NFO) will be issued at ₹10 per unit. The minimum application amount is ₹500 and in multiples of ₹1 thereafter. The minimum redemption amount is also ₹500. The NFO will remain open for at least three working days and not more than fifteen days. The subscription period may close early with public notice.

Benchmark and NAV

The scheme will benchmark its performance against the CRISIL Money Market Index A-I. NAVs will be computed daily and updated on the AMFI website by 11 p.m. each business day. Redemption proceeds are required to be paid within three working days, with penal interest applicable in case of delays.

Read more: Groww MF Launches Multi-Asset Allocation Fund NFO!

Plans and Options

The fund will offer Regular and Direct Plans, each with Growth and IDCW (Income Distribution cum Capital Withdrawal) options. Additional facilities such as SIP, STP, and SWP will be available. SIPs may start from ₹100 daily or weekly and ₹500 monthly or quarterly.

Conclusion

The draft scheme proposes a short-term investment option through money market instruments, offering multiple plans, systematic facilities, and daily NAV disclosures in line with SEBI regulations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.