• HDFC securities
• 07 Oct 2023
• Knowledge Centre

By the year 2027, India is expected to be the third-largest economy in the world. It’s a big deal, and a lot of it has to do with businesses and startups. Considering the amount of economic growth they bring to the table, these companies have great potential to fuel this growth. They span across industries like IT, Finance, Oil & Gas, amongst others. 

 

Indices like the Nifty Total Market Index cover 96% of India’s listed market. Comprised of 750 companies across large-cap, mid-cap, small-cap, and micro-cap segments, the stock in the index are weighted based on their free-float market capitalisation.

 

This index is made up of 2 smaller indices: Nifty 500 index and Nifty Microcap 250 index. Hence, when you invest in the Total Market Index, you're essentially getting a piece of almost the entire Indian stock market, from big established companies to promising new ones. It’s a convenient way to invest in the whole market in one go. Having said that, let’s talk about the Nifty total market index fund.

About Groww Nifty Total Market Index Fund

 

Groww Mutual Fund, previously known as Indiabulls Mutual Fund, has been given the green light by SEBI (Securities and Exchange Board of India) to launch its very first index fund - Groww Nifty Total Market Index Fund.

 

The New Fund Offer (NFO) will open on 3rd October 2023 and close on 17th Oct 2023. To know the scheme details, please refer to the Scheme Information Document (SID).

Features of the Nifty Total Market Index Fund

• Covers more than 96% of India’s listed market
• Offers board-sector coverage across 22 industries
• Invests in 750 micro-cap, small-cap, mid-cap and large-cap companies
• Low minimum investment amount i.e. ₹1000
• Zero Exit load

Who Should Invest in Groww Nifty Total Market Index Fund

• Investors aiming for long-term capital growth
• People wanting to be a part of India's economic growth
• Investors looking for a diverse investment without active management
• Investors interested in passive investment options

Allocation of Assets

As of September 6, 2023, Groww Nifty Total Market Index Fund allocates its assets across market caps as follows:

 

Large Cap	72.03%
Small Cap	16.11%
Mid Cap	8.60%
Micro Cap	3.39%

 

*Data as of Sept 6, 2023

 

Note: The above is for illustrative purposes only. Allocation to the above market caps may or may not remain the same. Refer to SID to know more about the scheme in detail.

Top 10 Holdings of Nifty Total Market Index

Here are the top 10 companies listed in the Nifty Total Market Index along with their weightage:

 

Company’s Name	Weightage (%)
HDFC Bank Ltd.	8.52
Reliance Industries Ltd.	5.92
ICICI Bank Ltd.	4.87
Infosys Ltd.	3.72
ITC Ltd.	2.82
Tata Consultancy Services Ltd.	2.50
Larsen & Toubro Ltd.	2.37
Axis Bank Ltd.	1.94
Kotak Mahindra Bank Ltd.	1.88
Hindustan Unilever Ltd.	1.63

 

Source: NSE (Data as of August 31, 2023)

Groww Nifty Total Market Index Fund vs. Nifty 50

Over the years, the Total Market Index has consistently outperformed the Nifty 50. Let’s look at the data from NSE:

 

TRI Index Returns(%)
	1 Year	3 Years	5 Years	10 Years	15 Years
Nifty 50	15.90	21.81	13.74	14.46	12.67
Nifty Total Market	18.45	24.71	15.13	16.33	13.79

 

Source: NSE (Data as of October 1, 2023)

Scheme Details:

 

Particulars	Details
Name of the Scheme	Groww Nifty Total Market Index Fund
Minimum Application Amount	₹1,000 and in multiples of ₹1/- for purchases and of ₹0.01 for switches
Exit Load	Nil
Fund Manager	Mr. Anupam Tiwari
Investment Strategy	Passive

 

Note: To know in detail about the Scheme please read the Scheme Information Document (SID).

How to Invest in Groww Nifty Total Market Index Fund

• Visit the website and Open a trading account
• Go To mutual fund tab, click on NFO.  Search for Groww Nifty Total Market Index Fund
• Click on Purchase
• You can either put in a lump sum amount or create an SIP

 

Check out the mutual fund SIP Calculator to get an idea about your SIP returns.

Taxation of Total Market Fund

1. Capital Gains Tax:

 

When you sell the units of Nifty Total Market Index Fund, you may incur profit. These capital gains are taxed based on your holding period:

 

• Short-term capital gains (STCG): When you sell your units of the fund within one year of buying it, you are subjected to an LTCG tax of 15%.

 

• Long-term capital gains (LTCG): If you hold the fund for 12 months or more, you are subjected to a 10% LTCG on profits exceeding ₹1 lakh.

 

2. Dividends Distribution Tax (DDT)

 

Dividends received from index funds (or any mutual fund) are subject to tax as per the applicable tax rate. However, dividends exceeding ₹5,000 attract 10% Tax Deducted at Source (TDS).

Conclusion

Groww Nifty Total Market Index Fund is a great way to invest your money in a wide range of Indian companies, big and small, all in one go. It's good for people who want to grow their money over a long time and be part of India's economic growth.

 

The fund doesn't require a lot of money to start, and there are no extra fees when you sell your investment.

 

The NFO opens on 3rd October. You can apply for it online through the HDFC Securities website Make sure to do your research before investing.

FAQs

1. Who should invest in Groww Nifty Total Market Index Fund?

 

This fund is suitable for investors looking for long-term capital growth, passive investors, and those looking for diverse investment opportunities.

 

2. What is the minimum investment amount for this fund?

 

The minimum investment amount for the Groww Nifty Total Market Index Fund is ₹1,000, making it an economical investment option.

 

3. Are there any exit loads for this fund?

 

No, there are zero exit loads associated with this fund, which means you can sell your investment without incurring additional fees.

 

4. How can I invest in the Groww Nifty Total Market Index Fund?

 

You can invest in this fund by visiting HDFC Securities website.  Search for the fund, and follow the instructions to invest. You can choose to make a lump sum investment or set up a systematic investment plan (SIP).