Groww Nifty PSU Bank Index Fund NFO
The Groww Nifty PSU Bank Index Fund is an open-ended index fund designed to track the Nifty PSU Bank Index TRI. The scheme provides investors diversified exposure to India’s major public sector banks through a passive investment strategy. This index fund aims to replicate benchmark returns while maintaining minimal tracking error.
| Fund Name | Groww Nifty PSU Bank Index Fund |
|---|---|
| Category | Index Fund |
| Benchmark | Nifty PSU Bank Index – TRI |
| NFO Period | March 06, 2026 – March 20, 2026 |
| Minimum Investment | ₹5,000 |
| Minimum Additional Investment | ₹500 |
Investment Strategy
The investment objective of the Scheme is to generate long-term capital growth by investing in securities of the Nifty PSU Bank Index in the same proportion or weightage with an aim to provide returns before expenses that track the total return of the index, subject to tracking error.
The scheme follows a passive strategy and primarily invests in PSU banking companies included in the benchmark index.
Top Holdings in Nifty PSU Bank Index – TRI
| Company | Weight |
|---|---|
| State Bank of India | 29% |
| Bank of Baroda | 17% |
| Punjab National Bank | 11% |
| Canara Bank | 10% |
| Union Bank of India | 9% |
| Indian Bank | 7% |
| Bank of India | 6% |
| Central Bank of India | 4% |
| UCO Bank | 4% |
| Punjab & Sind Bank | 3% |
Source: NSE Indices. Portfolio composition of Nifty PSU Bank Index TRI as of December 31, 2025.
Benchmark Performance
| Period | Nifty PSU Bank Index – TRI | Nifty 50 TRI |
|---|---|---|
| 1 Year | 32.4% | 18.7% |
| 3 Year CAGR | 24.6% | 15.3% |
| 5 Year CAGR | 19.8% | 14.1% |
| 10 Year CAGR | 13.2% | 12.7% |
Suitability
Who Should Invest
- Investors seeking sector exposure to PSU banks
- Long term passive investors
- Investors seeking index based strategy
- Investors expecting PSU banking sector growth
Who Should Avoid
- Investors seeking diversified multi sector exposure
- Short term traders
- Investors uncomfortable with sector concentration
- Low risk conservative investors
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FAQs
What is the investment objective of Groww Nifty PSU Bank Index Fund?
The objective of Groww Nifty PSU Bank Index Fund is to generate long term capital growth by replicating the Nifty PSU Bank Index TRI.
How does Groww Nifty PSU Bank Index Fund track the benchmark?
Groww Nifty PSU Bank Index Fund invests in the same stocks and weightages present in the Nifty PSU Bank Index TRI.
Is Groww Nifty PSU Bank Index Fund suitable for sector investing?
Yes, Groww Nifty PSU Bank Index Fund offers exposure to public sector banks which allows investors to participate in sector growth.
What are the risks associated with Groww Nifty PSU Bank Index Fund?
The fund carries sector concentration risk as it invests only in PSU banking companies included in the benchmark index.
What is the minimum investment amount in Groww Nifty PSU Bank Index Fund?
The minimum investment during NFO is ₹5,000 and additional investments start from ₹500.
Sushil Bajaj 
+91 931-5120-004
