Groww Nifty Total Market Index Fund
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Business Overview
The Groww Nifty Total Market Index Fund is designed for investors seeking broad exposure to the Indian equity market. It tracks the Nifty Total Market Index, providing a diversified portfolio that captures the performance of large, mid, and small-cap stocks. This fund is ideal for long-term investors looking to benefit from the overall growth of the Indian economy. With low expense ratios and a passive investment approach, it offers a simple and effective way to invest in the market.
- Diversified exposure to Indian equities
- Tracks the Nifty Total Market Index
- Ideal for long-term investors
- Low expense ratios for cost-effective investing
- Simple and passive investment strategy
Investment Thesis
The Groww Nifty Total Market Index Fund is a compelling investment choice, driven by a strong promoter group with established credibility. The ongoing digital services growth presents a significant runway for expansion, while the fund's attractive valuation compared to peers positions it favorably for long-term gains.
- Backed by a reputable promoter group, ensuring trust and reliability.
- Capitalizes on the burgeoning digital services sector in India.
- Offers a diversified exposure to the entire market, reducing risk.
- Currently trades at attractive valuations relative to its peers.
- Ideal for investors seeking long-term capital appreciation.
Opportunity vs Risk
- Diversified exposure to Indian equities
- Potential for long-term capital growth
- Low expense ratio compared to peers
- Rising retail investor participation
- Tax benefits under Section 80C
- Market volatility affecting returns
- Economic downturn impacts performance
- Interest rate hikes may hurt growth
- Limited historical performance data
- Regulatory changes in mutual funds
Peer Perspective
Groww Nifty Total Market Index Fund is currently trading at a slight premium compared to peers like SBI Nifty Index Fund and HDFC Nifty 50 Fund; a stable margin and consistent growth could trigger a rerating.
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10BusinessHighThe fund is invested in a diversified index, which is future-ready and covers a broad spectrum of sectors.
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10GrowthHighConsistent revenue growth observed in the underlying index constituents.
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10ProfitabilityHighROE and ROCE metrics are strong, but OCF is slightly lower than net profit.
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8ValuationHighValuation ratios are in line with peers, but slightly on the higher side.
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7BalanceHighThe fund maintains a healthy balance sheet with low debt levels.
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9GovernanceHighPromoter holding is stable with good disclosure practices.
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6DriversGoodGrowth drivers are present, but execution risks remain due to market volatility.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.