NFO Overview
The Groww Nifty PSE ETF FOF is an open-ended Fund of Fund scheme that invests in units of the Groww Nifty PSE ETF. It is designed for investors seeking long-term capital appreciation by gaining exposure to India’s leading Public Sector Enterprises (PSEs).
The scheme tracks the NIFTY PSE TRI Index, which represents top-performing CPSE companies across energy, power, metals, and infrastructure sectors. This fund offers a passive, low-cost route to participate in India’s PSU-led growth story.
Key Fund Details
| Fund Name | Groww Nifty PSE ETF FOF |
| Category | Fund of Fund (ETF) |
| Investment Type | Passive Index Fund |
| Minimum Investment | Rs. 500 and in multiples thereafter |
| Benchmark | NIFTY PSE TRI |
Investment Objective & Strategy
The investment objective of the scheme is to generate returns that are in line with the performance of the NIFTY PSE TRI, subject to tracking error. The fund follows a passive strategy by investing in units of Groww Nifty PSE ETF.
How the Index Works
The NIFTY PSE Index consists of leading Central Public Sector Enterprises (CPSEs) that meet eligibility criteria related to market capitalization, liquidity, and government ownership. It is free-float market capitalization weighted.
Top 10 Benchmark Holdings
The NIFTY PSE TRI is dominated by large, cash-rich public sector companies:
| Company Name | Weightage (%) |
|---|---|
| ONGC Ltd. | 18.50% |
| NTPC Ltd. | 17.20% |
| Coal India Ltd. | 16.10% |
| Power Grid Corporation | 11.40% |
| Indian Oil Corporation | 9.30% |
| Bharat Electronics Ltd. | 6.80% |
| Oil India Ltd. | 5.40% |
| GAIL (India) Ltd. | 4.90% |
| REC Ltd. | 3.50% |
| Power Finance Corporation | 2.90% |
Comparison with Nifty 50 Index Fund
| Metric | PSE ETF FOF | Nifty 50 Index Fund |
|---|---|---|
| Sector Exposure | Public Sector Focused | Diversified |
| Volatility | High | Moderate |
| Return Driver | PSU Valuations & Dividends | Broad Market Growth |
SIP Calculator
Who Should Invest / Avoid
Ideal For
- Long-term investors (5+ years)
- Investors bullish on PSU reforms
- Dividend-focused equity investors
Not Ideal For
- Low-risk investors
- Short-term traders
- Those seeking sector diversification
Pros and Cons
Pros: Exposure to undervalued PSUs, passive strategy, dividend-rich companies.
Cons: High concentration in PSU stocks, policy and government-decision risk.
Risk vs Return Expectation
This fund carries a Very High Risk profile. Returns are linked to PSU performance, government policies, and sector-specific cycles.
Sushil Bajaj 
+91 931-5120-004
