Groww Mutual Fund
Groww Mutual Fund
Introduction
Groww Mutual Fund is the asset management company (AMC) arm of Groww, a popular Indian online investment platform known for making investing accessible and simple for retail investors. While Groww itself was founded in 2016 as a fintech platform, its entry into the asset management space occurred more recently through the acquisition of IndiaFirst Life Insurance Company's mutual fund business.
In May 2023, Groww received SEBI's final approval to acquire Indiabulls Asset Management Company, which included the mutual fund schemes previously managed by Indiabulls Mutual Fund. Subsequently, the AMC was rebranded as Groww Asset Management Limited, and the existing schemes were renamed under the "Groww Mutual Fund" brand. This acquisition marks a significant step for Groww from being solely a distribution platform to also being a manufacturer of mutual fund products, aiming to integrate product creation with its vast distribution reach.
Fund Managers
Groww Mutual Fund has assembled a team of experienced fund managers to manage its schemes across different asset classes. Key individuals in their investment team include:
- Mr. Varun Gupta: MD & CEO.
- Mr. Anupam Tiwari: Head of Equity. He has extensive experience in the mutual fund industry, previously with Axis AMC, Principal PNB Mutual Fund, and Reliance AMC.
- Mr. Kaustubh Sule: Senior Fund Manager – Fixed Income. He also brings significant experience from Axis Mutual Fund, HDFC Standard Life Insurance, and Nippon Life.
- Mr. Karan Singh: Fund Manager (Fixed Income).
- Mr. Aakash Ashokkumar Chauhan: Fund Manager.
- Mr. Saptarshee Chatterjee: Senior Research Analyst & Assistant Fund Manager (Equity).
- Mr. Wilfred Peter Gonsalves: Fund Manager.
- Mr. Nikhil Satam: Fund Manager (Equity).
- Mr. Paras Matalia: Fund Manager.
- Mr. Shashi Kumar: Fund Manager.
Scope and Investment Philosophy
Groww Mutual Fund's investment philosophy, as articulated by the AMC, is built upon the pillars of simplicity, transparency, consistent wealth creation, and customer-centricity. They aim to demystify investing and provide straightforward solutions.
Their scope includes:
- Broad Product Range: Offering funds across equity, debt, hybrid, and passive (ETFs/Index Funds) categories to cater to diverse investor needs and risk profiles.
- "Double Impact Resilience Matrix" (Equity): For equity investments, they reportedly follow a "Double Impact Resilience Matrix" strategy, focusing on rigorous stock selection from companies with strong fundamentals.
- Value and Growth Investing: While the specific approach might evolve, their initial offerings suggest a blend of value and growth-oriented strategies in equities.
- Prudent Risk Management: Emphasis on robust risk management practices across all portfolios to ensure stable and consistent returns.
- Digital Integration: Leveraging Groww's strong technological capabilities and user-friendly platform to offer a seamless investment experience.
- Long-term Focus: Aiming to foster long-term wealth creation for investors.
Part 2: List of Funds with Brief Explanation
Groww Mutual Fund has been launching new funds and integrating existing ones from the Indiabulls acquisition. Here's a list of some of their prominent funds with a brief explanation:
Equity Funds:
- Groww Large Cap Fund: An open-ended equity scheme investing predominantly in large-cap stocks, aiming for relatively stable growth from established companies.
- Groww Value Fund: An open-ended equity scheme that follows a value investment strategy, seeking to invest in undervalued companies with strong fundamentals.
- Groww Multicap Fund: An open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks, providing diversification across market capitalizations.
- Groww ELSS Tax Saver Fund: An Equity Linked Savings Scheme (ELSS) that invests predominantly in equities and offers tax benefits under Section 80C, with a 3-year lock-in period.
- Groww Banking & Financial Services Fund: A sectoral/thematic equity fund focusing on companies in the banking and financial services sector.
- Groww Nifty Total Market Index Fund: An index fund that aims to replicate the performance of the Nifty Total Market Index, offering exposure to a broad universe of Indian equities (over 750 stocks).
- Groww Nifty Smallcap 250 Index Fund: An index fund that passively tracks the Nifty Smallcap 250 Index, providing exposure to the small-cap segment.
- Groww Nifty EV & New Age Automotive ETF: An Exchange Traded Fund (ETF) that invests in companies focused on the Electric Vehicle (EV) and new-age automotive themes.
Debt Funds:
- Groww Liquid Fund: An open-ended liquid scheme that invests in very short-term money market and debt instruments, providing high liquidity and aiming for stable returns.
- Groww Overnight Fund: An open-ended overnight scheme that invests in debt and money market instruments with a maturity of one day, offering maximum liquidity and minimal interest rate risk.
- Groww Short Duration Fund: An open-ended debt scheme investing in debt and money market instruments such that the Macaulay duration of the portfolio is between 3 months and 6 months.
- Groww Dynamic Bond Fund: An open-ended dynamic debt scheme that invests across various debt and money market instruments with a dynamically managed duration based on the fund manager's interest rate view.
- Groww Gilt Fund: An open-ended debt gilt scheme that invests predominantly in Government Securities (G-Secs), which carry no credit risk.
Hybrid Funds:
- Groww Arbitrage Fund: A hybrid arbitrage fund that aims to generate returns by exploiting price differences between the cash and derivatives segments of the equity market, with the balance in debt instruments, offering relatively low risk and tax efficiency.
- Groww Aggressive Hybrid Fund: An open-ended aggressive hybrid scheme that invests a higher proportion (typically 65-80%) in equities and the remainder in debt instruments, aiming for growth with some stability.
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