Groww Mutual Fund launches Groww Gold ETF

Groww Gold ETF is a passively managed fund that uses an investment strategy intended to mirror changes in the domestic gold price. The minimum percentage of the Scheme’s total assets that will be invested in gold or gold-related instruments is 95%. It could have debt or money market securities worth up to 5% of its total assets. It is anticipated that the tracking error of the Scheme will eventually be comparatively low in comparison to the Underlying benchmark’s performance. In order to reduce tracking errors as much as possible, the Investment Manager would continuously monitor the Scheme’s tracking errors. The Scheme’s ability to achieve a specific tracking error in relation to the performance of the underlying benchmark cannot be assured or guaranteed. Out of the eight fund offerings that are available every week, over half are NFOs in the index fund category. Passive funds have gained popularity among Indian investors in recent times. In August, new fund offers brought in a total of Rs 884 crore into the category.

Details of Groww Gold ETF:

The Groww Gold ETF, which has a high-risk profile, will open on October 7 and close on October 18. A minimum subscription fee of Rs 500 will be required. The fund manager is Wilfred Gonsalves. The plan will reopen on November 4, 2024.

Details about the fund manager:

Wilfred has been involved in investment management for more than 7 years, and he has a solid background in macroeconomics, fixed income, gold, and credit analysis. Wilfred supported the trading of Gold ETF units and was a specialist dealer in Fixed Income securities at Whiteoak Capital, where he spent 1.5 years of employment. He worked for three years as a fixed-income dealer at Edelweiss Tokio Life Insurance before that, handling portfolio management and trading fixed income. Wilfred also worked as a member of the Deal Origination team at L&T Finance for two years, performing thorough credit analysis to back up investment choices.

Objective of Groww Gold ETF:

The scheme’s investment goal is to produce returns equal to the domestic price of physical gold before costs while investing in physical gold and accounting for tracking errors, fees, and expenses. There is no guarantee or assurance that the scheme’s investment goal will be met.

Conclusion: The newly launched Groww Gold ETF from Groww Mutual Fund is a good option for retail investors to invest in, but the riskometer indicates a high level of risk, so you should conduct your own research before committing to any money.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.