The new fund offer (NFO) for the scheme opened on May 29 and will close on June 12.
According to the fund house, the ETF is designed to provide exposure to companies from the small-cap segment selected on the basis of momentum and quality factors through a passive investment strategy.
The underlying index comprises 100 stocks selected from the Nifty Smallcap 250 index using a combination of momentum and quality scores under a rules-based methodology. The index is rebalanced semi-annually.
As of May 14, the top constituents in the index included Multi Commodity Exchange of India Ltd., Laurus Labs Ltd., Navin Fluorine International Ltd., Anand Rathi Wealth Ltd. and Radico Khaitan Ltd., according to NSE data.
Groww Mutual Fund said the minimum investment amount in the scheme is ₹500 and there is no exit load. The scheme will be managed by Nikhil Satam, Aakash Chauhan and Shashi Kumar.
The benchmark for the ETF is the Nifty Smallcap 250 Momentum Quality 100 Index-TRI.
The fund house said the strategy seeks exposure to small-cap companies with relatively stronger price trends and financial characteristics based on the index methodology. It added that the scheme may offer a diversified route to access the small-cap segment through factor-based investing.
Investments in the scheme will be subject to market risks and tracking error, the fund house said.
