NFO Alert: Groww Mutual Fund Launches Nifty Smallcap 250 ETF

Groww Mutual Fund has launched the Groww Nifty Smallcap 250 ETF, an open-ended equity scheme. The NFO opens on October 10, 2025, and closes on October 24, 2025. The minimum investment is ₹500. There is no exit load. The fund aims to track the Nifty Smallcap 250 Index.

Objective of the Fund

The scheme’s main objective is to replicate the Nifty Smallcap 250 Index by investing in the same proportion and weightage as the index. It seeks long-term capital growth. Returns are not guaranteed and may vary with market movements. The fund is intended for investors looking for exposure to small-cap equities with a low to moderate risk profile.

Investment Approach

The fund manager, Shashi Kumar, will manage the portfolio to balance investments across small, mid, and large-cap stocks. About 65-100% of assets will be invested in equity and equity-related instruments of small-cap companies. The remaining portion may be allocated to mid-cap, large-cap, debt, and money market instruments depending on market conditions.

Use of Derivatives

The fund may use derivative instruments within regulatory limits. Opportunistic investments in growth stocks may be made. Portfolio turnover will be monitored to manage costs and maintain risk-adjusted returns.

Investment Scope

The scheme will mainly invest in equity and equity-related instruments of small-cap companies listed on Indian stock exchanges. Selective investments may be made in mid-cap and large-cap stocks for diversification. Debt and money market instruments will be used for liquidity and risk management.

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Conclusion 

The Groww Nifty Smallcap 250 ETF provides a way to invest in small-cap companies in India. The fund follows the Nifty Smallcap 250 Index, allows a minimum investment of ₹500, and has no exit load. The allocations are designed to provide equity exposure while managing risk.

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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.