Groww Mutual Fund gets SEBI nod to launch its first index fund

Groww, an online stock broking firm, on Thursday received Securities and Exchange Board of India (SEBI) approval to launch its first index fund. While sharing the news on Twitter, Groww's co-founder, Lalit Keshre said that Groww Mutual Fund has secured approval for its inaugural new fund offer (NFO) - the Groww Nifty Total Market Index Fund.

This development comes days after its industry peer, Zerodha, unveiled plans for two distinctive schemes under its mutual fund umbrella: the 'Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund' and the 'Zerodha Nifty Large Midcap 250 Index Fund (ZN250)' through Zerodha Asset Management Ltd.

Notably in June 2023, SEBI took steps in regulating online investment platforms, including Paytm, Zerodha, and Groww, that facilitate transactions in direct plans for mutual fund schemes—referred to as execution-only platforms or EOPs.

Last month, Helios Capital Management also received final approval from capital markets regulator to launch a mutual fund (MF) house. Helios had applied for a mutual fund licence with SEBI in February, 2021 and was granted an in-principal nod last September.

Old Bridge Capital Management is also waiting for final approval from SEBI to launch a mutual fund house. Brokerage firms AngelOne and Emkay Global Financial Services had also received in-principle approvals from SEBI for mutual fund business, according to a Moneycontrol report.

Reportedly, there are at least 3 companies - Unifi, Alpha and Wizemarkets whose applications for a mutual fund licence is under consideration.

In its monthly report for July 2023, the Association of Mutual Funds in India (AMFI) said that mutual fund folios have reached an all-time high of over Rs 15 crore The total assets under management stood at Rs 46.37 lakh crore versus Rs 44.39 lakh crore (MoM),