Groww Nifty India Railways PSU Index Fund(IDCW)
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Business Overview
The Groww Nifty India Railways PSU Index Fund (IDCW) is a mutual fund designed to track the performance of the Nifty India Railways Index. It is ideal for investors looking to gain exposure to the growing railway sector in India. This fund matters as it allows you to invest in a diversified portfolio of Public Sector Undertakings (PSUs) in the railway industry, which is pivotal for India's infrastructure development. With a focus on long-term growth, this fund offers a unique opportunity to participate in a vital sector of the economy.
- Tracks Nifty India Railways Index
- Focus on Public Sector Undertakings
- Ideal for long-term investors
- Exposure to a growing infrastructure sector
- Diversified investment in railway companies
Investment Thesis
The Groww Nifty India Railways PSU Index Fund presents a compelling investment opportunity due to its strong backing from a credible promoter group, significant growth potential in digital services, and attractive valuations compared to its peers. This fund is well-positioned to capitalize on the expanding railway sector in India.
- Strong promoter group enhances credibility and trust.
- Digital services growth offers substantial upside potential.
- Attractive valuation relative to peer funds.
- Focus on India's expanding railway infrastructure.
- Diversified exposure to key public sector undertakings.
Opportunity vs Risk
- Strong growth in Indian railways
- Government investment in infrastructure
- Diversification through PSU exposure
- Potential for long-term capital gains
- Market volatility affecting returns
- Regulatory changes in railways
- Dependency on government policies
- Economic slowdown impact on performance
Peer Perspective
Groww Nifty India Railways PSU Index Fund trades at a slight premium compared to peers like ICICI Prudential and SBI, necessitating consistent margin stability and accelerated growth for a potential rerating.
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10BusinessHighRailway sector has growth potential but faces regulatory challenges.
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10GrowthHighModerate revenue growth observed, but profitability inconsistent.
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10ProfitabilityHighROE and ROCE are below industry average, cash flow issues noted.
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8ValuationHighValuation metrics are higher compared to peers.
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7BalanceHighDebt levels manageable, but liquidity concerns exist.
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6GovernanceGoodPromoter holding is stable, but transparency could improve.
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5DriversGoodLimited growth drivers identified, execution risks present.
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5TechnicalsGoodWeak momentum and liquidity issues in the market.