Groww Nifty India Railways PSU Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Groww Nifty India Railways PSU Index Fund Direct Growth Plan is at ₹7.2723 as of 15 Sep 2026, with scheme AUM of ₹59 Cr. Its 1-year, 3-year and 5-year returns are -25.38%, 0% and 0%, and it sits in the High Risk category. Our view is that this is a narrow thematic index fund for investors who can tolerate sharp swings and want targeted exposure rather than a broad-market core allocation.
The fund has been under pressure over the past year, while its portfolio remains concentrated in a small group of railways and PSU-linked names. That combination can create strong sensitivity to sector sentiment. It may suit investors who understand the theme, can stay invested through volatility, and want a rules-based product, but it does not look like a steady, low-volatility option.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹7.2723 as of 15 Sep 2026 |
| AUM | ₹59 Cr |
| Expense Ratio | 0.47% |
| Launch Date | 04 Feb 2025 |
| Min SIP | ₹500 |
| Risk Category | High Risk |
| Benchmark | Nifty 50 |
| Fund Category | Index Funds |
| Exit Load | 1% on or before 30D, Nil after 30D |
| Fund Managers | Aakash Chauhan, Nikhil Satam, Shashi Kumar |
The fund is managed by Aakash Chauhan, Nikhil Satam and Shashi Kumar.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -8.26% | -4.81% |
| 3M | -10.42% | -3.63% |
| 1Y | -25.38% | -8.27% |
| 3Y | 0% | Data not available |
| 5Y | 0% | Data not available |
The recent pattern is weak, and the fund has moved lower over both the 1-month and 3-month periods. The 1-year loss is materially deeper than the benchmark’s decline, which tells us the theme has lagged the broader market during a difficult stretch.
The longer window does not yet give us a full compounding record because the fund was launched only in February 2025. Even so, the shorter-period path shows persistent pressure rather than a clean recovery phase. That matters for a thematic index fund, because investors are not just buying the underlying names; they are also accepting that sector leadership can reverse quickly.
Compared with the benchmark, the fund has underperformed across the available recent windows. The gap is widest over 1 year, which suggests that the theme’s market cycle has been less favorable than the broader index. In our view, the key point is not just the negative return, but the fact that the drawdown has been more severe than the benchmark’s move over the same period.
For investors, that means returns may remain highly dependent on the railway and PSU theme regaining favor. Until that happens, the fund is likely to behave more unevenly than a diversified equity holding.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Groww Nifty India Railways PSU Index?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Groww Nifty India Railways PSU Index? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Groww Nifty India Railways PSU Index Fund Direct Growth Plan | -25.38% | 0% | 0% |
| ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan | 32.61% | 29.92% | Data not available |
| Tata Nifty Capital Markets Index Fund Direct Growth Plan | 25.91% | Data not available | Data not available |
| Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan | 21.71% | Data not available | Data not available |
| Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan | 20.15% | Data not available | Data not available |
| ICICI Pru Nifty Pharma Index Fund Direct Growth Plan | 18.11% | 18.92% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
The current fund’s 1-year return is far below the peer group shown here, while several peer funds have delivered positive double-digit gains over the same horizon. That contrast makes the recent weakness in this fund stand out clearly. The 3-year and 5-year fields are not meaningful yet for this fund because of its short history, so the longer-horizon peer comparison is more useful for the peers than for the current scheme.
The key takeaway is that the short-term story and the longer-term story diverge. Peers with longer records have shown a much stronger compounding profile, while this fund is still building its own history and has done so through a difficult 1-year stretch. That makes it important to separate the theme’s return potential from the current phase of underperformance.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Container Corporation of India Limited | Logistics | 20.06% |
| Indian Railway Finance Corporation Ltd | Finance | 18.93% |
| Indian Railway Catering & Tourism Corp | Hospitality | 16.48% |
| Rail Vikas Nigam Limited | Infrastructure | 13.54% |
| NTPC Limited | Power | 5.34% |
| Bharat Electronics Limited | Capital Goods | 5.11% |
| Ircon International Limited | Infrastructure | 4.42% |
| Rites Limited | Capital Goods | 3.32% |
| Oil & Natural Gas Corporation Limited | Crude Oil | 3.10% |
| Railtel Corporation of India Limited | Telecom | 2.74% |
The largest holding, Container Corporation of India Limited, carries a weight of 20.06%, so it is likely to have greater influence on fund movement than any other single position. The next three holdings are also large, which tells us the portfolio is anchored around a handful of core names rather than being evenly spread.
The weight then falls off quite noticeably by the time we get to the tenth holding, which is under 3%. That drop suggests the portfolio is top-heavy, with the leading positions carrying most of the exposure while the smaller holdings play a secondary role. In a theme-led index fund, that structure can amplify the effect of stock-specific moves.
The top 10 holdings account for approximately 93.04% of the portfolio, and the disclosed list covers 14 holdings in total. That points to a concentrated structure, with only a small tail beyond the largest names. For investors, the practical implication is that the fund may respond quickly to sentiment around a few railway and PSU-linked companies.
To see all holdings, visit the Groww Nifty India Railways PSU Index Fund Direct Growth Plan page
Source data date: as of 15 Sep 2026
Who should invest
This fund fits investors who can handle High Risk equity exposure and are comfortable with a theme that may move sharply over short periods. The recent 1-year loss and weaker short-term trend suggest that patience matters here more than in a diversified index fund.
A longer investment horizon is more relevant than a short one, but even then the main trade-off is clear: you get focused exposure to railways and PSU-linked names, yet you also accept concentrated swings and a return path that can lag a broader benchmark for extended stretches. That makes it more appropriate as a satellite allocation than as a core equity holding.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: 1% if units are sold on or before 30 days. No exit load after 30 days.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Groww Nifty India Railways PSU Index Fund Direct Growth Plan?
The current NAV is ₹7.2723 as of 15 Sep 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is -25.38%, while the 3-year and 5-year returns are 0% each.
How has the fund performed versus the benchmark?
It has trailed the benchmark over the available recent periods. The 1-year return is -25.38% versus -8.27% for the benchmark.
How does it compare with the peer funds shown here?
Its 1-year return is below the peer funds shown here, many of which have positive double-digit gains over the same period. The longer-horizon comparison is limited for this fund because it is a newer scheme.
What is the minimum SIP amount?
The minimum SIP amount is ₹500.
What is the risk profile and who manages the fund?
The fund is in the High Risk category and is managed by Aakash Chauhan, Nikhil Satam and Shashi Kumar. Its portfolio is concentrated in railways and PSU-linked holdings, so return swings may be pronounced.
Bottom line
This fund’s recent performance is weaker than its benchmark and weaker than the peer return figures shown here, while its own longer-horizon figures are still not established because of the short track record. The portfolio is tightly focused, with the largest holdings carrying a large share of assets and only a limited tail beyond them. That concentrated structure fits a high-risk thematic approach, but it also means investors need a long horizon and comfort with uneven returns.
Published on 16 September 2026 at 10:08 AM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.