Groww Mutual Fund launches Nifty India Defence ETF: Key details #NewsETFs

Groww Mutual Fund has launched the Groww Nifty India Defence ETF. The New Fund Offer (NFO) for the scheme will be available till October 4, 2024.

This initiative will allow investors to gain exposure to key companies driving India’s defence industry.

India’s defence sector is expanding rapidly.

The government has set a production target of ₹3 lakh crore by FY 2029, alongside a projected investment pipeline of $138 billion from FY 2024 to FY 2026.

The defence export target is also ambitious, aiming for ₹50,000 crore by FY 2029.

These initiatives position Indian firms as potential leaders in global defence manufacturing, Groww Mutual Fund said.

Support for the sector comes from the government’s AtmaNirbhar Bharat initiative and increased budget allocations. The defence budget for FY 2024-25 is set at ₹6.22 lakh crore.

The Groww Nifty India Defence will ETF track the Nifty India Defence Index.

This index includes major players like Bharat Electronics and Hindustan Aeronautics. It captures the performance of top defence companies, offering exposure across large-cap, mid-cap, and small-cap segments.

HAL has an order book of ₹94,000 crore, exceeding its FY 2024 revenue by three times. All 15 companies in the index are witnessing growth in their order books, the fund house said.

Investment details of the fund include a minimum investment of ₹500, with increments of ₹1 thereafter.

There is no exit load.

Abhishek Jain will manage the fund.