The new fund offer (NFO) opened for subscription on July 8 and will remain open until July 22.
The ETF follows a passive investment strategy and seeks to replicate the composition of the Nifty Cement Index rather than actively selecting stocks. The scheme invests in the same constituents as the index in similar proportions, with returns expected to closely mirror the benchmark after accounting for tracking error.
The Nifty Cement Index comprises 20 companies from the cement and cement products industry that are part of the Nifty Total Market Index. Constituents are selected based on free-float market capitalisation and other eligibility criteria, with individual stock weights capped at 15%. The index is reconstituted semi-annually and rebalanced every quarter.
According to the latest index data, the largest constituents include Grasim Industries, Shree Cement, UltraTech Cement, Ambuja Cements and JK Cement.
The fund offers investors exposure to the listed cement sector through a single investment instead of buying individual stocks.
Groww Mutual Fund said the ETF is designed to provide a transparent, rules-based approach to investing in the cement sector. The fund house cited continued infrastructure spending, urbanisation and capacity expansion as factors supporting the industry’s long-term outlook.
The minimum investment amount is ₹500, and the scheme does not levy an exit load. The ETF will be managed by Nikhil Satam, Aakash Chauhan and Shashi Kumar.
As with other sectoral funds, the scheme is concentrated in a single industry and does not offer diversification across sectors. Its performance will depend largely on the outlook for the cement industry and the stocks comprising the underlying index. Investors should assess the suitability of such sector-focused investments before investing.
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