NFO Alert: Groww Mutual Fund Launches Nifty Cements ETF

Groww Mutual Fund has opened the Groww Nifty Cements ETF for subscription through a New Fund Offer (NFO). The offer opens on 8 July 2026 and closes on 22 July 2026.  

The scheme is an open-ended exchange traded fund (ETF) under the Equity: Sectoral – Other category. The minimum application amount is ₹500. The fund is available only under the Growth plan and does not have a lock-in period or exit load. 

Investment Objective 

The scheme is to track the Nifty Cements Total Return Index (TRI). It will invest in the companies that form the Nifty Cements Index, maintaining the same stock weightages as the benchmark.  

The objective is to generate returns, before expenses, that closely match the performance of the index. Since the fund follows a passive approach, it does not actively select stocks or change allocations based on market views. 

Portfolio Structure 

The ETF will hold only cement sector companies that are part of the underlying index. As a result, the portfolio will remain concentrated in a single industry rather than being spread across multiple sectors.  

The scheme's benchmark is the Nifty Cements TRI, which measures the performance of the index after accounting for both price movements and dividends distributed by constituent companies. 

Risk and Fund Management 

The Riskometer classifies the scheme as 'Very High' risk, reflecting the nature of sector-specific equity investments.  

The fund will be managed by Aakash Ashokkumar Chauhan and Shashi Kumar, who will oversee portfolio replication and seek to keep tracking error within acceptable limits.  

Tracking error refers to the difference between the fund's returns and those of the benchmark index. 

Scheme Features 

The ETF has been launched as an open-ended scheme, allowing subscriptions during the NFO and trading on the exchange after listing, subject to regulatory requirements.  

Investors can enter the scheme with ₹500, and no exit load will apply when units are sold. The scheme offers only the Growth option. 

Read More: Upcoming NFO: ITI Mutual Fund Files Draft Papers with SEBI for Multi Asset Allocation Fund! 

Conclusion 

The Groww Nifty Cements ETF is a sector-based passive fund that will track the Nifty Cements TRI by investing in the index constituents. The NFO will remain open from 8 July to 22 July 2026, with a minimum investment requirement of ₹500. 

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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.