NFO Alert: Groww Mutual Fund Launches Nifty Chemicals ETF

Groww Mutual Fund has launched the New Fund Offer (NFO) of the Groww Nifty Chemicals ETF, an open-ended exchange traded fund. The NFO opened on December 26, 2025, and will close on January 9, 2026, according to scheme documents.  

The ETF falls under the Exchange Traded Funds sub-category and is marked under the “Others” category. 

Scheme Objective 

The stated objective of the scheme is to generate long-term capital growth by investing in securities that make up the Nifty Chemicals Index.  

The portfolio will replicate the index constituents in the same weightage as the benchmark. The scheme seeks to deliver returns, before expenses, that are in line with the total returns of the index, subject to tracking error. 

Investment Structure 

The Groww Nifty Chemicals ETF follows a passive investment strategy, with no active stock selection. Net asset value (NAV) will be calculated on a daily basis.  

After allotment, units of the ETF will be listed on the stock exchange and can be traded during market hours, subject to liquidity. 

Minimum Investment and Exit Load 

The minimum investment amount for the ETF has been set at ₹500, with additional investments also allowed from ₹500 onwards.  

The scheme does not levy any exit load, as per the offer document. Redemption or sale of units will depend on market availability and trading volumes on the exchange. 

Risk Classification 

The scheme has been classified under the very high risk category. As a sector-focused ETF, returns will be linked to the performance of companies within the chemicals sector. 

Movements in input costs, demand conditions, regulatory developments and global market trends may influence index performance. 

Fund Management 

The scheme is managed by Nikhil Satam, with Aakash Chauhan and Shashi Kumar also listed as fund managers.  

The role of the fund management team involves maintaining alignment with the benchmark index and managing operational aspects such as tracking error. 

Sector Exposure 

The ETF provides exposure to listed chemical companies included in the Nifty Chemicals Index through a single product. Being sector-specific, the fund does not offer diversification across industries and remains sensitive to trends within the chemicals segment. 

Read More: NFO Alert: Zerodha Mutual Fund Launches Nifty Short Duration G-Sec Index Fund! 

Conclusion 

The Groww Nifty Chemicals ETF tracks the Nifty Chemicals Index through a passive investment approach. Returns will depend on index performance and prevailing market conditions. 

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.