Groww Mutual Fund has launched two new passive investment schemes — the Groww BSE Hospitals ETF and the Groww BSE Hospitals ETF Fund of Fund (FOF) — aimed at providing investors exposure to India’s growing hospital sector through the BSE Hospitals Index. 

The twin offerings seek to enable investors to participate in the organised hospital segment via a structured, rules-based passive investment route. The exchange traded fund (ETF) will track the BSE Hospitals Index – Total Return Index (TRI) while the FOF will invest in units of the underlying ETF. 

Hospital segment dominates domestic healthcare market

Commenting on the launch, Varun Gupta, CEO of Groww Mutual Fund, said healthcare delivery — particularly hospital-based care — is playing an increasingly central role in India’s economic and social framework. He noted that hospitals account for nearly three-fourths of the domestic healthcare industry and are witnessing sustained demand driven by rising utilisation, expanding insurance coverage and demographic shifts. 

Gupta added that supportive government policies, growth in medical tourism, and a rising preference for private healthcare are creating structural tailwinds for the sector’s long-term expansion. “Through these launches, we are enabling investors to access this segment in a structured and transparent manner through a passive investment framework aligned with long-term participation,” he said. 

Ashutosh Singh, MD and CEO of BSE Index Services, said hospitals form a foundational component of India’s healthcare ecosystem and reflect evolving access, utilisation and capacity trends. As the organised hospital segment scales up, he said, the need for robust and representative benchmarks becomes more significant.

BSE Hospitals index to serve as sector performance gauge

The BSE Hospitals Index has been designed to capture this segment and serve as a consistent reference point for tracking its performance within the broader healthcare space. 

Hospitals account for nearly 74% of India’s healthcare market and are expected to continue expanding, supported by wider insurance penetration, an ageing population, a rising burden of chronic diseases, medical tourism inflows and government initiatives to enhance healthcare access. 

The BSE Hospitals Index comprises listed hospital companies selected from the BSE 1000 universe and follows a diversified, rules-based methodology with periodic rebalancing. 

In recent years, listed hospital companies have reported improved financial performance, with revenues rising significantly and profitability growing at a faster pace, reflecting better scale, utilisation and operating efficiencies.