The Groww Nifty 500 Momentum 50 ETF FoF is an open-ended fund of fund (FoF) scheme that invests in units of the Groww Nifty 500 Momentum 50 ETF. The investment objective of the scheme is to generate long-term capital growth by tracking the performance of the underlying ETF. However, there is no guarantee that this objective will be achieved. The scheme offers liquidity as units can be purchased, switched, or redeemed at NAV-based prices on all business days. Repurchase requests will be processed at the prevailing NAV, and redemption proceeds will be dispatched within three working days, as per SEBI regulations. In case of delays, a penal interest of 15% per annum or as prescribed by SEBI will be applicable.

Investment Objective and Strategy

Objective:

The investment objective of the Groww Nifty 500 Momentum 50 ETF FoF – Direct (G) is to generate long-term capital growth by investing in units of the Groww Nifty 500 Momentum 50 ETF However, there can be no assurance or guarantee that the investment objective of the scheme will be achieve.

Investment Strategy:

The Groww Nifty 500 Momentum 50will be managed passively with investments in stocks in the same proportion as in the Nifty 500 Momentum 50Index. The investment strategy of the Scheme will be to invest in a basket of securities forming part of Nifty 500 Momentum 50Index in similar weight proportion.

The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements. Subject to the Regulations and the applicable guidelines the Scheme may invest in the schemes of Mutual Funds. The investment strategy shall be in line with the asset allocation. Derivative products are leveraged instruments and can provide disproportionate gains as well as disproportionate losses to the investor.

Execution of such strategies depends upon the ability of the fund manager to identify such opportunities. Identification and execution of the strategies to be pursued by the fund manager involve uncertainty and decision of fund manager may not always be profitable. No assurance can be given that the fund manager will be able to identify or execute such strategies. The risks associated with the use of derivatives are different from or possibly greater than, the risks associated with investing directly in securities and other traditional investments.

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What are the Risk associated with Groww Nifty 500 Momentum 50 ETF FoF – Direct (G)?

The Groww Nifty 500 Momentum 50 ETF FoF – Direct (G) specific risk factors of each of the underlying schemes become applicable where a fund of funds invests in any underlying scheme. Investors who intend to invest in fund of funds are required to and are deemed to have read and understood the risk factors of the underlying schemes relevant to the Fund of Funds scheme that they invest in. The Scheme will be subject to risks related to fluctuations in collateral value/settlement, liquidity and counter party related risk

Risks associated with ADR / GDR / Foreign Securities:

• The Groww Nifty 500 Momentum 50 ETF FoF – Direct (G) will not have any exposure to ADR / GDR / Foreign Securities. Consolidated Std Obs.08& SO. 02
30Risks associated with Securitized Debt

• The scheme will not have any exposure to Securitized debt. Risks associated with Short Selling and Securities Lending

• The scheme does not intend to short sell the securities and will not engage in Securities lending.

What are the Risk Mitigation Strategies of Groww Nifty 500 Momentum 50 ETF FoF – Direct (G)?

Liquidity Risk As such the liquidity of stocks that the fund invests into could be relatively low. The fund will try to maintain a proper asset-liability match to ensure redemption/Maturity payments are made on time and not affected by illiquidity of the underlying stocks. Risks Associated with Equity Investments:

– The scheme has a diversified portfolio to counter the volatility in the prices of individual stocks. Diversification in the portfolio reduces the impact of high fluctuations in daily individual stock prices on the portfolio.

Risks Associated with Debt & Money Market Instruments Credit Risk

-The fund has a rigorous credit research process. There is a regulatory and internal cap on exposure to each issuer. This ensures a diversified portfolio and reduced credit risk in the portfolio. While these measures are expected to mitigate the above risks to a large extent, there can be no assurance that these risks would be completely eliminated.

– The FOF will invest in ETF, which in cumulation will endeavors to have a diversified equity portfolio comprising stocks across various sectors of the economy to reduce sector specific risks. All the underlying ETF scheme related risk factors will apply to the Fund of Fund.

– Any investments in debt securities would be undertaken after assessing the associated credit risk, interest rate risk and liquidity risk.