Groww files draft for Nifty India Defence ETF to SEBI

Groww Asset Management Limited filed draft documents for the Groww Nifty India Defence ETF, an open-ended scheme designed to track the Nifty India Defence Index, to the Securities Exchange Board of India (SEBI).

The primary goal of the scheme is to generate long-term capital growth by investing in securities of the Nifty India Defence Index in the same proportion or weightage. The ETF aims to provide returns before expenses that closely match the total return of the Nifty India Defence Index, subject to tracking errors.

The ETF will replicate the Nifty India Defence Index, which includes top companies in India's defence sector, the draft documents said. Meanwhile, the total returns will be managed by Abhishek Jain.

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The Groww Nifty India Defence ETF will invest up to 20% in securities lending, 50% in non-hedging equity derivatives, and 15-20% in short-term bank deposits. It will exclude overseas securities, ReITS, and InVITS, focusing on equity investments within regulatory limits.

HDFC Defence Fund, an open-ended equity scheme investing in defence and allied sector companies, has returned 123.33% since its inception.