The Fund is to Capture India’s Growth Story; NFO Period: November 26th - December 10th 2024
FinTech BizNews Service
Mumbai, 27 November, 2024: India is at the threshold of a new economic era, with its GDP nearing $4 trillion and projected to more than double to $10 trillion by FY2032. As the nation advances to become the world’s third-largest economy by 2027, a unique combination of demographic strength, infrastructure investment, and digital transformation is driving growth across industries and market capitalizations. This evolution is not confined to large, established corporations; it extends to mid- and small-cap enterprises, creating a multifaceted landscape ripe with investment opportunities.
Recognizing these opportunities, Groww Mutual Fund introduces the Groww Multicap Fund, an open-ended equity scheme aiming to capture growth across large-cap, mid-cap, and small-cap stocks. The fund’s New Fund Offer (NFO) is open for subscription from November 26 to December 10, 2024.
India’s transformation is underpinned by several structural shifts:
● Infrastructure Development: The Rs111 lakh crore National Infrastructure Pipeline (NIP) is set to modernize connectivity through highways, ports, and railways. Over 11,000 kilometres of highways are being constructed annually, enhancing logistical efficiency.
● Export Growth: Initiatives like Production Linked Incentive (PLI) schemes and Make in India are enabling sectors such as defence, electronics, and chemicals to capture global markets.
● Digitization: With one of the largest internet user bases globally, India’s digital economy is flourishing, revolutionizing industries like payments, e-commerce, and IT services.
● Premium Consumption: Rising disposable incomes are fueling demand for luxury goods in real estate, automotive, and jewellery sectors, reflecting India’s shift toward high-value consumption.
● Import Substitution: Policies aimed at reducing reliance on imports are bolstering domestic production across niche industries, including speciality chemicals, ceramics, and precision manufacturing.
The multicap approach leverages opportunities across large, mid, and small caps, each contributing uniquely to India’s economic landscape. This structure makes multicap funds one of the most efficient ways to diversify a portfolio. Large caps include industries such as financial services, FMCG, pharmaceuticals, and automobiles, which align with macroeconomic trends and represent established market leaders. 3Mid caps include sectors like logistics, financial technology, healthcare analytics, and industrial gases, reflecting growth driven by domestic demand and technological advancements. 3Small caps focus on niche areas such as speciality chemicals, ceramics, and BPO services, benefiting from initiatives like “Make in India” and the PLI scheme.
Varun Gupta, CEO of Groww Mutual Fund, stated: "India’s growth story is unparalleled in scale and diversity, presenting opportunities across sectors and market capitalizations. The Groww Multicap Fund aims to provide investors with a structured way to participate in this transformative journey. By focusing on diversification and adhering to our Quality & Growth at a Reasonable Price (Q-GaRP) philosophy, we aim to help investors navigate the complexities of an evolving economy while fostering long-term wealth creation."
At the core of the fund’s investment strategy lies the Q-GaRP philosophy, focusing on:
● Quality: Investing in companies with strong governance, competitive moats, and robust financial health.
● Growth: Identifying scalable businesses benefiting from favourable sectoral trends and long-term demand.
● Reasonable Price: Ensuring investments are made at valuations that offer high potential for compounding returns.
India’s growth trajectory offers an unprecedented opportunity for investors to align their portfolios with the nation’s evolving economic landscape. The Groww Multicap Fund is designed for those with a long-term horizon, ideally five years or more, seeking to navigate the complexities of an evolving market while capitalizing on its diverse opportunities.
Additional notes:
The Groww Multicap Fund adheres to a disciplined multicap framework, allocating a minimum of 25% each to large, mid, and small-cap stocks, with the flexibility to invest the remaining 25% dynamically. This approach ensures a diversified exposure across India’s economic spectrum, positioning investors to potentially benefit from broad-based growth.
The fund employs distinct strategies for each market capitalization:
● Large Caps: A top-down approach analyzing macroeconomic conditions and sectoral growth trends, with a focus on earnings upgrade cycles.
● Mid and Small Caps: A bottom-up approach emphasizing managerial capability, sustainable business models, and resilience to market cycles.
● Dynamic Rebalancing: Adapting allocations to evolving market conditions to maximize growth potential.
Key Highlights of the Scheme:
● Portfolio Allocation: 25% allocation each in small-cap, mid-cap, and large-cap stocks, with the flexibility to allocate the remaining 25% as per the market dynamics
● Benchmark Index: Nifty 500 Multicap 50:25:25 Index – TRI
● Investment Objective: To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of large, mid and small-cap companies. However, there can be no assurance that the investment objective of the scheme will be realised.
● Minimum Investment: ₹100 and in multiples of ₹1 thereafter
● Exit Load: 1% for redemption within a year; NIL after a year
● Fund Manager: Anupam Tiwari
