Key Points:
- Groww Mutual Fund receives approval from SEBI for its debut index fund, the Groww Nifty Total Market Index Fund.
- This approval closely follows Zerodha’s submission of draft offer documents to SEBI for two schemes, signaling a focus on passive investment strategies.
- In September 2021, the Competition Commission of India (CCI) approved Groww’s parent company, Nextbillion Technology Pvt Ltd, to acquire Indiabulls Asset Management Company (AMC) and Indiabulls Trustee Company, solidifying Groww’s position in India’s investment technology landscape.
- Founded in 2017 by former Flipkart employees, Groww offers a range of innovative investment options, including stockbroking, equity-linked savings, SIPs, IPOs, ETFs, and direct mutual funds.
Groww Mutual Fund, a rising contender in the asset management arena, has clinched a pivotal approval from India’s market regulator, the Securities and Exchange Board of India (SEBI), to unveil its inaugural index fund. Lalit Keshre, co-founder of Groww, took to X (formerly Twitter) to announce the milestone, declaring, “Groww Mutual Fund got approval for its first NFO – Groww Nifty Total Market Index Fund.”
This development swiftly follows Zerodha’s recent submission of draft offer documents to SEBI, signaling its intent to introduce two schemes: the Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and the Zerodha Nifty Large Midcap 250 Index Fund (ZN250). Zerodha, adhering to its strategic direction, aims to establish a repertoire of passive schemes in the market.
In a strategic move last September, the Competition Commission of India (CCI) greenlit Groww’s parent company, Nextbillion Technology Pvt Ltd, to acquire Indiabulls Asset Management Company (AMC) and Indiabulls Trustee Company. This move positioned Nextbillion Technology, operating under the umbrella of Groww Group, as a significant player in India’s investment technology landscape.
Founded in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Bengaluru-based Groww has been pioneering innovative avenues in stockbroking, equity-linked savings, SIPs, IPOs, ETFs, and direct mutual funds.
Meanwhile, Old Bridge Capital Management (OBCM), a distinguished portfolio management firm, has secured the ultimate green light from SEBI to kickstart its mutual fund operations under Old Bridge Mutual Fund. Expressing delight, Kenneth Andrade, Founder of OBCM, affirmed, “We are delighted to receive this license to commence operations for Old Bridge Mutual Fund and will be launching our maiden actively managed equity scheme. As we move forward with our newly acquired license, we remain committed to providing investors with long-term investment solutions on its mutual funds platform.”
Simultaneously, Samir Arora’s Helios Capital Asset Management (India) Private Ltd is charting its course into the mutual fund domain by filing a scheme information document (SID) with the markets regulator SEBI for an overnight fund.
These recent developments underscore the dynamic landscape of India’s mutual fund industry, with new players entering the fray and established names expanding their offerings. As the sector continues to evolve, investors can anticipate a broader array of investment options, thereby diversifying their portfolios and optimizing their financial strategies.