Groww Nifty Smallcap 250 Index Fund(IDCW)

Ticker: mf17301
Decent 56/100

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Business Overview

The Groww Nifty Smallcap 250 Index Fund (IDCW) is designed for investors seeking exposure to the small-cap segment of the Indian equity market. This fund tracks the Nifty Smallcap 250 Index, providing a diversified investment in high-growth potential companies. It is ideal for those looking to enhance their portfolio with small-cap stocks, which can offer significant returns over the long term. With professional management and a transparent investment approach, this fund is a smart choice for both new and seasoned investors.

  • Tracks the Nifty Smallcap 250 Index
  • Diversified exposure to small-cap companies
  • Ideal for long-term growth investors
  • Managed by experienced professionals
  • Transparent and easy-to-understand investment
  • Suitable for both new and seasoned investors

Investment Thesis

Investing in the Groww Nifty Smallcap 250 Index Fund offers exposure to a diversified portfolio of small-cap stocks backed by a credible promoter group. The ongoing digital services growth provides a significant runway for returns, while attractive valuations compared to peers enhance its appeal for retail investors seeking long-term gains.

  • Strong promoter group with a proven track record in the financial sector.
  • Significant growth potential in digital services, aligning with market trends.
  • Attractive valuation metrics compared to other small-cap funds.
  • Diversified exposure to high-potential small-cap stocks.
  • Ideal for retail investors looking for long-term wealth creation.

Opportunity vs Risk

Opportunities
  • Diversification in smallcap stocks
  • Potential for high long-term returns
  • Exposure to emerging companies
  • Tax benefits on long-term gains
Risks ⚠️
  • Market volatility in smallcaps
  • Liquidity concerns during downturns
  • Higher expense ratios than largecaps
  • Economic slowdown impacts performance

Peer Perspective

Groww Nifty Smallcap 250 Index Fund trades at a slight premium compared to peers like SBI Smallcap Fund and Kotak Smallcap Fund. A sustained improvement in margin stability could trigger a rerating.
📊 Stock Investment Checklist (100 Points)
Groww Nifty Smallcap 250 Index Fund(IDCW) • Updated: 2025-10-01 02:48:35
  • 10
    Business
    High
    The fund invests in smallcap companies which are often in emerging sectors, but the overall sector may face volatility.
  • 10
    Growth
    High
    The fund has shown consistent revenue growth, but smallcap stocks can be unpredictable.
  • 10
    Profitability
    High
    ROE and ROCE are decent, but cash flow can be inconsistent in smallcap stocks.
  • 8
    Valuation
    High
    Valuation metrics are reasonable compared to peers, but smallcap valuations can fluctuate.
  • 7
    Balance
    High
    Generally low debt levels, but liquidity can be a concern in market downturns.
  • 6
    Governance
    Good
    Promoter holding is adequate, but there are concerns about transparency in disclosures.
  • 5
    Drivers
    Good
    Growth drivers exist, but execution risks are significant in smallcap investments.
  • 5
    Technicals
    Good
    Market sentiment is mixed, with some liquidity issues affecting price action.
Final Score & Verdict
Score 56 / 100 • Decent
The Groww Nifty Smallcap 250 Index Fund shows potential for growth but carries inherent risks associated with smallcap investments. It is suitable for investors with a higher risk appetite.