NFO Alert: Groww Mutual Fund Launches Arbitrage Fund

Groww Mutual Fund has opened its arbitrage scheme for subscription, with the New Fund Offer (NFO) scheduled from April 8 to April 22, 2026.  

The scheme is open-ended and will allow continuous purchase and redemption after the NFO period. Units are offered at ₹10 during the offer, with NAV to be disclosed on a daily basis post allotment.   

The scheme falls under the arbitrage category, and transactions will be carried out at applicable NAV rather than through stock exchange listing.  

Investment Strategy 

The fund is to invest in arbitrage opportunities between the cash and derivatives markets, along with trades within the derivatives segment. These strategies aim to capture pricing differences across market segments.  

When such opportunities are limited, the scheme may allocate funds to short-term debt and money market instruments, including treasury bills and commercial papers, to manage liquidity.  

Asset Allocation and Benchmark 

The scheme proposes to invest 65% to 100% in equity and equity-related instruments, including derivatives, and up to 35% in debt and money market instruments.  

Its performance will be measured against the Nifty 50 Arbitrage Total Return Index, which reflects returns from arbitrage strategies.  

Key Terms and Charges 

The minimum investment amount is ₹500, with additional investments allowed in multiples of ₹1. The scheme does not levy any exit load, allowing investors to redeem units without a charge.  

Redemption proceeds are to be processed within 3 working days from a valid request. The scheme is categorised as low risk, based on its investment structure.  

The fund will be managed by Paras Matalia, who will oversee the portfolio from inception.  

Investment Objective 

The scheme aims to generate long-term capital growth by investing in arbitrage opportunities, supported by debt and money market exposure. The document notes that there is no assurance that the stated objective will be achieved.  

Read More: SEBI Approves PMS Licence for Bajaj Alternate Investment Management! 

Conclusion 

The fund combines arbitrage-based strategies with short-term fixed income exposure within defined allocation limits and without exit load. 

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.