Groww Mutual Fund Filed Draft With SEBI for Small Cap Fund

Groww Mutual Fund has filed draft documents with SEBI for the launch of the Groww Small Cap Fund. The scheme is structured as an open-ended equity fund that will focus mainly on investments in small-cap companies. The stated objective is to achieve long-term capital growth through exposure to equity and equity-related instruments of smaller firms

Investment Allocation

The scheme proposes to allocate 65-100% of total assets into equities of small-cap companies. Up to 35% may be invested in equities outside the small-cap segment, debt instruments, or money market securities. Use of derivatives is also permitted within SEBI guidelines, with exposure limits defined for hedging and portfolio balancing

Benchmark and Risk

Performance will be compared against the Nifty Smallcap 250 Total Return Index, which represents companies ranked 251st and below by full market capitalisation. Both the scheme and its benchmark fall in the very high risk category, as shown in the riskometer. The fund does not offer any guaranteed returns

Offer Terms

During the New Fund Offer (NFO), units will be priced at ₹10 each. The NFO will remain open for at least 3 working days but not longer than 15 days. The fund will reopen for continuous purchase and redemption at NAV-based prices after the NFO period ends. Redemption proceeds are expected to be dispatched within three working days, in line with SEBI regulations

Minimum Investment and Options

The minimum application amount is ₹500, with additional investments in multiples of ₹1. Systematic Investment Plans (SIPs) can start with ₹100 for daily or weekly frequency, and ₹500 for monthly or quarterly options. The fund will be available in Regular and Direct Plans, each with Growth and IDCW (Income Distribution cum Capital Withdrawal) options. There is no exit load

Management

The fund will be managed by Anupam Tiwari, Head of Equity at Groww AMC, who has over 18 years of experience in the mutual fund industry. He also manages other equity-oriented schemes under Groww Mutual Fund.

Read More: Planning a ₹2 Crore Corpus Through SIP: Here’s How Much You Need to Invest 

Conclusion

The filing marks the addition of a small-cap focused product to Groww Mutual Fund’s offerings, designed under SEBI’s framework for equity schemes. Investors can apply during the NFO once the dates are announced

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 scheme-related documents carefully.