Groww Mutual Fund on Thursday announced the launch of the Groww Nifty Smallcap 250 Momentum Quality 100 ETF, an open-ended exchange-traded fund that tracks the Nifty Smallcap 250 Momentum Quality 100 Index – TRI, subject to tracking error. 

The new fund offer (NFO) for the scheme opened on May 29 and will close on June 12, 2026. 

The ETF seeks to provide investors with passive exposure to India’s small-cap segment through a rules-based investment strategy combining momentum and quality factors. 

According to the fund house, the momentum factor focuses on companies demonstrating relatively stronger price trends based on the index provider’s methodology, while the quality factor emphasises firms with relatively stronger fundamentals and financial characteristics. 

The fund house said the small-cap segment offers access to a broader and more diverse investment universe and has historically witnessed periods of higher profitability growth and wider return dispersion compared with some other market segments. 

The underlying Nifty Smallcap 250 Momentum Quality 100 Index selects 100 companies from the Nifty Smallcap 250 index using a combination of momentum and quality scores.

The index follows a rules-based methodology and is rebalanced semi-annually. 

According to publicly available NSE data cited by the fund house, the index has outperformed the broader Nifty Smallcap 250 Index in several periods across a majority of calendar years. The index currently trades at a price-to-earnings (PE) ratio of 27.30, compared with its one-year average PE of 28.27. 

The scheme aims to offer investors a passive and systematic route to gain exposure to small-cap companies screened for momentum and quality characteristics through a diversified portfolio structure. 

The benchmark for the scheme is the Nifty Smallcap 250 Momentum Quality 100 Index – TRI. The minimum investment amount has been fixed at ₹500, while the scheme carries no exit load. 

The ETF will be managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar.