Groww Nifty PSU Bank Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Groww Nifty PSU Bank Index Fund Direct Growth Plan is a PSU-bank focused index fund with a NAV of ₹9.829 as of 16 Sep 2026 and an AUM of ₹4 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0%, and the fund sits in the High Risk bucket. Our view is that this is a narrow, sector-specific allocation rather than a broad core equity holding, so it fits investors who can tolerate sharp swings and want exposure tied to public sector banks.

The portfolio is heavily tilted toward a few large banking names, with State Bank of India alone at 34.03%. The fund’s recent movement has been weak over both 1M and 3M, and that short-term pressure has come on top of a very limited operating history since launch on 24 Mar 2026. On the information available, it looks more suitable as a satellite holding than as a primary equity allocation.

Quick facts

Particular	Details
NAV	₹9.829 as of 16 Sep 2026
AUM	₹4 Cr
Expense Ratio	0.0%
Launch Date	24 Mar 2026
Min SIP	₹500
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	No exit load
Fund Managers	Nikhil Satam, Aakash Chauhan, Shashi Kumar

The fund is managed by Nikhil Satam, Aakash Chauhan and Shashi Kumar.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-5.18%	-4.41%
3M	-6.09%	-3.60%
1Y	0%	Data not available
3Y	0%	Data not available
5Y	0%	Data not available

The short-term picture is soft. The fund fell in both 1M and 3M, and the 3M decline is steeper than the benchmark’s move over the same window, which tells us the fund has been more volatile than the market reference in the recent past.

Because the scheme was launched only in March 2026, the return history is still too short to judge long-cycle compounding with confidence. That matters because an index fund’s value is often best understood over longer holding periods, yet we do not have a mature 3Y or 5Y record here. The available 1M and 3M pattern does, however, show that the fund has not yet established a smooth track record.

Relative to the benchmark, the fund lagged in both reported short-term windows. The 1M gap is modest, but the 3M gap is wider, which suggests the portfolio has been carrying more downside than the benchmark during the recent weak patch. For an index product, that kind of drift is worth noting because it can shape investor experience even when the long-term objective is passive tracking.

At this stage, the main performance question is not long-run consistency but whether the fund can settle into a tighter pattern around its reference index. Until a longer history builds up, we would treat the recent numbers as a sign of early-stage instability rather than as a completed performance story.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Groww Nifty PSU Bank 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Groww Nifty PSU Bank Index Fund Direct Growth Plan	0%	0%	0%
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	29.31%	30.01%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	21.45%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.13%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.68%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	17.57%	18.84%	Data not available

The current fund’s return profile trails the peer set on the available 1Y figures, while its own 3Y and 5Y figures are not yet established in a way that allows a meaningful comparison. That leaves the short-term story clearly weaker than the better-known peer numbers, but the longer-term story is mostly a function of the fund’s recent launch rather than a full comparison cycle.

Some peers have both 1Y and 3Y data, and those figures are materially stronger than this fund’s current 1Y result. Even so, we would be careful about overreading that gap because the current scheme is a very specific PSU-bank theme and has only begun to build history. This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

What matters most for comparison is that the fund has not yet shown a stable track record that matches the stronger short-term outcomes seen among the available peers. Until the history lengthens, the peer table says more about the fund’s early weakness than about its long-term quality.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
State Bank of India	Bank	34.03%
Bank of Baroda	Bank	12.1%
Canara Bank	Bank	11.66%
Punjab National Bank	Bank	10.75%
Union Bank of India	Bank	9.96%
Indian Bank	Bank	8.68%
Bank of India	Bank	4.7%
Bank of Maharashtra	Bank	4.57%
Central Bank of India	Bank	1.41%
Indian Overseas Bank	Bank	1.3%

The largest holding, State Bank of India, carries a 34.03% weight, so it is likely to have the greatest influence on the fund’s day-to-day movement. The next few positions are also sizeable, but the step-down is noticeable after the first holding, which means returns may be shaped heavily by a small cluster of names rather than by a balanced spread.

Weight falls from 34.03% at the top to 1.3% at the tenth holding, which is a steep drop and points to a concentrated structure. Even though there are 11 disclosed holdings, the top 10 account for approximately 99.16% of the portfolio, so the disclosed book is tightly packed into PSU banks rather than spread across a long tail of unrelated stocks.

That concentration could amplify both upside and downside when the banking theme moves sharply. Because all disclosed holdings sit in the same sector, the portfolio may behave more like a focused thematic basket than a diversified equity fund, and that is an important part of the risk story for this scheme.

To see all holdings, visit the Groww Nifty PSU Bank Index Fund Direct Growth Plan page

Source data date: as of 16 Sep 2026

Who should invest

This fund suits investors who are comfortable with High Risk exposure and who can tolerate sharp sector-led swings. The recent negative 1M and 3M pattern, along with the lack of a mature 3Y or 5Y record, means it is better viewed as a longer-horizon thematic allocation than as a stable core holding.

Its main trade-off is clear: the portfolio is tightly concentrated in PSU banks, so performance can move sharply when that theme is out of favour. Investors who want broad-market balance may find that too narrow, while those who specifically want public sector bank exposure may accept the higher volatility for that targeted bet.

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: No exit load.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of Groww Nifty PSU Bank Index Fund Direct Growth Plan?

The current NAV is ₹9.829 as of 16 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The fund’s 1-year, 3-year and 5-year returns are 0%, 0% and 0%.

How has the fund performed against its benchmark recently?

It has lagged the benchmark in both recent windows, with a 1M return of -5.18% versus -4.41% and a 3M return of -6.09% versus -3.60%.

How does it compare with the peer funds listed here?

Its available 1Y figure is well below the stronger peer figures shown in the comparison table, while its own longer-horizon figures are not yet established in a way that allows a full like-for-like reading.

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 Nikhil Satam, Aakash Chauhan and Shashi Kumar. The portfolio is concentrated in PSU banks, with State Bank of India as the largest holding at 34.03%.

Bottom line

This is an early-stage PSU-bank index fund whose recent short-term results have been weak, and the limited history means its longer-run profile is still undeveloped. Compared with the available peer figures, the fund’s current return picture looks softer, while its portfolio remains highly concentrated in a single sector and led by State Bank of India. That combination points to a narrow thematic exposure with High Risk characteristics, which may appeal only to investors who want focused PSU-bank participation and can live with sharp swings.

Published on 17 September 2026 at 4:04 PM 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.