Groww Launches New ETF Tracking Nifty PSU Bank Index: NFO Open Till March 20

Groww Mutual Fund has introduced a new exchange-traded fund (ETF) designed to mirror the performance of the Nifty PSU Bank Index on a total return basis.

The Groww Nifty PSU Bank ETF is an open-ended, passively managed scheme that aims to replicate the Nifty PSU Bank Index, Total Return Index (TRI), subject to tracking error. The New Fund Offer (NFO) began on March 6 and will remain open for subscription until March 20.

This ETF offers investors a straightforward way to gain exposure to publicly listed government banks through a rules-based, passive investment strategy.

Key Investment Details

• Minimum Investment: ₹500
• Exit Load: Nil
• Benchmark: Nifty PSU Bank Index – TRI
• Fund Managers: Nikhil Satam, Aakash Chauhan, and Shashi Kumar

The scheme invests in the constituent stocks of the index to closely replicate its performance, while accounting for minor tracking deviations.

PSU Index Overview

The Nifty PSU Bank Index comprises government-owned banks listed on Indian stock exchanges. As of February 25, 2026, the top constituents by weight were:

• State Bank of India: 34.69%
• Bank of Baroda: 13.64%
• Canara Bank: 12.47%
• Punjab National Bank: 10.48%
• Union Bank of India: 8.96%
• Indian Bank: 8.09%
• Bank of India: 4.97%
• Bank of Maharashtra: 3.51%
• Indian Overseas Bank: 1.24%
• Central Bank of India: 0.91%

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 or 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 in the securities market are subject to market risks, read all the related documents carefully before investing.