Groww Nifty Non-Cyclical Consumer Index Fund(IDCW)
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Business Overview
The Groww Nifty Non-Cyclical Consumer Index Fund (IDCW) is designed for investors seeking exposure to stable, non-cyclical consumer companies in India. This fund aims to deliver consistent returns by investing in sectors that are less sensitive to economic cycles. Ideal for conservative investors, it offers a balanced approach to wealth creation while minimizing risks associated with market volatility. With a focus on essential goods and services, this fund is a strategic choice for long-term financial growth.
- Invests in stable non-cyclical consumer companies
- Ideal for conservative and risk-averse investors
- Focuses on essential goods and services
- Aims for consistent returns and lower volatility
- Part of a diversified investment strategy
Investment Thesis
The Groww Nifty Non-Cyclical Consumer Index Fund (IDCW) presents a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuations compared to peers. This fund is well-positioned to capitalize on the increasing demand for non-cyclical consumer goods in India.
- Backed by a reputable promoter group, ensuring trust and stability.
- Digital services sector is experiencing robust growth, enhancing fund prospects.
- Attractive valuation metrics compared to competing funds, offering better entry points.
- Focus on non-cyclical consumer goods aligns with steady demand trends.
- Diversification benefits from a well-structured index fund strategy.
Opportunity vs Risk
- Stable demand for non-cyclical goods
- Potential for long-term capital appreciation
- Diversification in consumer sector
- Growing middle-class consumer base
- Market volatility affecting returns
- Regulatory changes impacting sector
- Inflation affecting consumer spending
- High competition in consumer market
Peer Perspective
Groww Nifty Non-Cyclical Consumer Index Fund is currently trading at a slight premium compared to peers like SBI Nifty Next 50 Fund and ICICI Prudential Nifty 50 Fund. A rerating could occur with consistent margin stability and improved growth metrics.
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10BusinessHighNon-cyclical consumer sector is stable and essential, but faces competition.
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10GrowthHighModerate revenue growth observed, but profit growth has been inconsistent.
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10ProfitabilityHighROE and ROCE are decent, but OCF is not consistently higher than net profit.
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8ValuationHighP/E and P/B ratios are higher compared to peers, indicating potential overvaluation.
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7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is stable, but some concerns over disclosures.
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5DriversGoodGrowth drivers are present, but execution risks remain significant.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.