Zerodha-rival Groww gets SEBI approval for debut index fund
The Securities and Exchange Board of India (SEBI) has granted approval to online stockbroking firm Groww to launch its new index fund. This decision follows closely on the heels of Zerodha, which, just three days ago, announced its two new schemes: Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250).
Groww's new fund: Nifty Total Markets Index Fund
Groww's first index fund, the Groww Nifty Total Markets Index Fund, will be launched through a new fund offering (NFO). This fund will track the performance of the Nifty Total Markets Index, which includes all companies listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The NFO will be open for subscription for a limited period, with a minimum investment of Rs. 500.
Nextbillion Technology's Indiabulls AMC acquisition
In September 2021, the Competition Commission of India (CCI) granted approval for Nextbillion Technology Pvt. Ltd, the parent company of Groww, to acquire Indiabulls Asset Management Company and Indiabulls Trustee Company. Groww is headquartered in Bengaluru. It was founded in 2017 by former Flipkart employees Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal. The company offers innovative solutions for stockbroking, equity-linked savings, SIPs, IPOs, ETFs, and direct mutual funds.
AMC business has been growing in popularity
Asset management has been growing in popularity, prompting numerous market players to enter the mutual funds sector. Just one day ago, Old Bridge Capital Management (OBCM), a leading portfolio management firm, revealed that it had obtained SEBI's final approval to begin mutual fund operations. Additionally, in August, Samir Arora's Helios Capital Asset Management (India) Private Ltd also received SEBI's approval to initiate its mutual fund business.
Passive investment schemes gain traction in India
In the asset management business, passive investment schemes have been gaining the most popularity in India over the past few years. These schemes aim to track the performance of a particular index or benchmark, rather than trying to outperform it. This approach has gained traction due to its lower costs and ease of management. As a result, many online stockbroking firms have been launching new index funds to cater to this growing demand.
