Groww Mutual Fund on Thursday launched India’s first Nifty Non-Cyclical Consumer Index Fund, which will be open till May 16. The fund is an open-ended scheme replicatingtracking the Non-Cyclical Consumer Index–TRI. Groww Nifty Non-Cyclical Consumer Index Fund shall be managed by Abhishek Jain, who has almost 12 years of experience in equity markets. Before joining Groww Asset Management Ltd, he was associated with Edelweiss Tokio Life Insurance as a senior dealer and was also associated with Acko General Insurance and Shriram Asset Management Co Ltd. What is a non-cyclical index fund? The Nifty Non-Cyclical Consumer Index aims to track the performance of the portfolio of stocks that broadly represent the Non-Cyclical Consumer theme within the basic industries like Consumer Goods, Consumer Services, Telecom, Services, Media, Entertainment, Publication, Textiles sectors etc. All about the fund The benchmark of the scheme is set as the Nifty Non-Cyclical Consumer Index - TRI. The fund aims to generate long-term capital growth by investing in securities of the Nifty Non-Cyclical Consumer Index (TRI) in the same proportionweightage. This is to offer returns before expenses that track the total return of the Nifty Non-Cyclical Consumer Index (subject to tracking errors). The fund offers a minimum lump sum investment of Rs 500, with subsequent increments in multiples of Rs 1. For investors opting for Systematic Investment Plans (SIP), the minimum investment stands at Rs 1,200. Load details Groww MF has said the fund imposes an exit load of 1% if units are redeemed or switched out within 30 days from the date of allotment. However, no exit load is applicable beyond this initial 30-day period. Certain exemptions apply to units allotted on reinvestment of Income Distribution cum Capital Withdrawal, while systematic transactions adhere to prevailing exit loads. Investment breakup The fund will allocate between 95% and 100% of its assets in equities and equity-related securities, with a minor allocation of 0% to 5% in debt and money market instruments, units of debt schemes, and debt ETFs. Sector Breakup of the index tracked by the scheme: Nifty Non-Cyclical Consumer Index Sector Fast Moving Consumer Goods: 42.49% Consumer Services: 20.71% Consumer Durables: 20.37% Telecommunication: 12.15% Services: 2.38% Textiles: 1.11% Media, Entertainment & Publication: 0.78% Who should invest in this fund? Groww Mutual Fund has said investors with long-term horizons and a preference for equity and equity-associated securities should invest in Groww Nifty Non-Cyclical Consumer Index Fund. Harsh Jain, Co-founder and COO, Groww, said: "The Groww Nifty Non-Cyclical Index Fund is India’s first index fund, which enables people to invest in the top stocks from consumer industries such as FMCG, Textiles, etc., These companies manufacture items we need in our daily lives and tend to be slightly more insulated from economic cycles and therefore are seen as non-cyclical sectors.”
