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Groww Mutual Fund Launches India’s First Power Sector-Focused ETF and FoF.

Banking & Finance | Dated: 16 Jul 2025

In July 2025, Groww Mutual Fund, the asset management arm of Groww investment platform, launched India’s first exchange-traded and fund-of-fund schemes dedicated entirely to the power sector. These new schemes, named 'Groww BSE Power ETF' and 'Groww BSE Power ETF FoF', are designed to promote low-cost, power-focused equity investing in India.

🎯 Key Highlights:

  • - The two new passive investment products were jointly managed by fund managers Nikhil Satam, Akanksha Chauhan, and Shashi Kumari. The New Fund Offer (NFO) for both schemes was opened for subscription on July 18, 2025, and will remain active till August 1, 2025. The schemes are registered under the Bombay Stock Exchange (BSE) and specifically track the BSE Power Index for investment returns.
  • - The Groww BSE Power ETF (Exchange Traded Fund) directly invests in a basket of power sector-related companies listed in the BSE Power Index. It is targeted at investors seeking long-term capital appreciation through equity investments in the electricity generation, transmission, and infrastructure segments. It allows real-time buying and selling on stock exchanges, making it suitable for portfolio diversification.
  • - The second product, Groww BSE Power ETF FoF (Fund of Fund), is a mutual fund that invests in the units of the Groww BSE Power ETF. It is ideal for investors who prefer the mutual fund route instead of direct stock market exposure. The product aims to deliver equity-index-based returns while minimizing the hassle of direct ETF trading.

💡 Other Important Facts:

  • (i) Both funds track the BSE Power Index – Total Return Index (TRI), which reflects performance from 14 major companies engaged in India’s power generation, distribution, and infrastructure. The BSE Power Index offers a cost-effective structure for power-sector exposure, and includes companies like NTPC Limited, Power Grid Corporation of India, Tata Power, and Adani Energy Solutions.
  • (ii) The schemes have a low minimum investment barrier of Rs. 500 and carry no exit load, making them attractive for retail investors. The launch also aligns with India’s growing focus on clean energy, where the power sector is witnessing rapid transformation due to increased demand, favourable government policies, and large-scale investments in Renewable Energy (RE).
  • (iii) Groww Mutual Fund, headquartered in Mumbai, Maharashtra, was established in 2011 and is currently led by CEO Varun Gupta. These new products represent Groww’s effort to offer targeted investment opportunities in niche segments like the power sector, while expanding access to passive investing in India.

📚 Test Your Knowledge:

Which mutual fund house recently launched India’s first power sector-focused Exchange Traded Fund (ETF) and Fund of Fund (FoF)?

Correct Answer: Groww Mutual Fund

🚀 Quick Recap:

About Groww Mutual Fund

  • CEO : Varun Gupta
  • Headquarter : Mumbai