*

India's first Railway PSU Index Fund

Groww Nifty
India Railways
PSU Index Fund
(An open-ended scheme tracking the Nifty India Railways PSU Index - TRI)

NFO PERIOD: 16 - 30 JAN ‘25

*As on December 13, 2024

 Indian Railways - Key milestones

1853: 1951: 2002: 2012: 2024:

The first train started Nationalization of Launch of online train Revenue crosses Efficiency through
from Mumbai to Indian Railways 1 reservations and ticketing 1,000 Cr for the first electrification of 97% of
1
Thane 1 through IRCTC time 1 BG network 2

1900: 1970s: 2008: 2014:

First indigenously Expansion of freight Indian Railways becomes the Dynamic pricing in freight and
manufactured steam corridors 1 world’s fourth-largest passenger services enhanced
locomotive 1 freight carrier
1
revenue generation 1

Source 1 - Railway Technology, June 12, 2018 | Source 2 - Press Information Bureau, December 29, 2024
The Company forms part of the Nifty India Railways PSU Index – TRI as on December 31, 2024. The Company referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in the Company and neither should it be
considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The scheme may or may not have exposure in the Company. Please consult your financial advisor before investing.
 The

Indian Railways today

 Indian Railways:
Driving growth; Moving people & goods

Passenger traffic for FY 2024 was India has the 3rd highest number of In FY24, freight loading crossed 1,588
6.7 billion, nearly equivalent to the railway stations in the world (7,325) after metric tonnes against the previous year’s
world’s population. Russia (13,746). loading of 1512 metric tonnes.
1 2 3

As of March 31, 2023, the Indian Railway network 97% of the Indian rail network is now
5
spanned 68,584 km (42,616 mi) in route length - this electrified.
4
is the fourth longest in the world.

Source 1 - Moneycontrol, data as on July 22, 2024 | Source 2 - Russia Train Travel Information | Source 3 - IBEF, November, 2024 | Source 4 - Press Information Bureau, July 22, 2024 | Source 5 - Press Information Bureau, November 27, 2024
Increased focus by the Government

h 2.62 lakh
growt crores
x
1.65
2.5

A record allocation of Rs. 2.62 lakh crore has been

made as Capex for the Indian Railways, for FY 2024-25.
1 2 1.58 lakh
crores

Budget allocation
1.5
An ambitious modernisation plan has committed
Rs. 10-12 lakh crore over the next five years to transform
1
the railway landscape.
2

0.5

0
FY 2019-20 FY 2023-24
Years

Source : Excerpt from Financial Express, data as on June 22, 2024

Source 1 - Press Information Bureau, July 23, 2024 | Source 2 - Swarajya, July 6, 2023
Growth drivers: Strong demand and policy support

The Government is focusing on infrastructure development, to meet expected future demand.

Growth of freight traffic Rising passenger demand

due to industrialisation with rising income levels

x
1.56 545.6 B 17.35K
Market size (in USD Billion)

Gross Domestic Product

x
~8

per capita (USD)

349.4 B

2.24K

2023 2047 (Expected)

2025 2030 (Expected)
Years Years

Source: Mordor intelligence Source: Trading Economics

 Key targets undertaken by the Government of India

1
The Indian Railways generates revenue from two primary sources: 72% from freight and 28% from passenger ticketing.

The focus for growth remains on enhancing both segments:

Passenger travel Freight

To transport ~ 830 crore passengers in 2024-25.

2
Increase the share of railways in freight transportation
from 27% to 45% by 2030.
7

Manufacture 400 more energy efficient Vande Bharat 3

trains. Reduce freight transit times by increasing the average
8
speed of freight trains to 50 km/h.
Track expansions and upgradations for 44,000+ kms,
4
costing Rs. 7.44 lakh crore. Reduce logistics costs to 8% of the country’s GDP,
9
from the current 13-15%.
5
Kavach: Expansion plan underway for ~ 6000 Km.
10
Establish 100 more Gati Shakti cargo terminals.
6
Modernize over 1,300 railway stations.

Source 1 - Statista, July 7, 2024 | Source 2: Moneycontrol, July 2024. | Source 3: Press Information Bureau, Train Modernisation Book | Source 4: IBEF, November 2024 | Source 5: Press Information Bureau, Train Modernisation Book |
Source 6: Press Information Bureau, Feb 28, 2024 | Source 7 & 8: Press Information Bureau, 11 Feb, 2022 | Source 9 & 10: KPMG, June 28, 2024
 The future of railway travel

Elevating the passenger

experience
 Major passenger initiatives by the Ministry of
Railways - Vande Bharat trains
1
The Indian Railways plans to operationalise 4,500 Vande Bharat trains by 2047.
As on January 31, 2024, 41 trains of the Vande Bharat service are running on
the Indian Railways.
2

Related stakeholders
3

Bharat Heavy Electricals Limited (BHEL)

The BHEL-led consortium has won an order to supply 80 Vande Bharat trains in
the mega tender of Indian Railways and undertaking comprehensive maintenance
of the same for a period of 35 years.

4
Vande Bharat trains are semi high-speed and ultra modern trains, featuring:

A maximum speed of 160 km/h for faster travel Onboard infotainment system and GPS-based
passenger information system

Zero discharge vacuum bio toilets CCTV cameras

Source 1: India Today, March 22, 2024 | Source 2: IBEF, November, 2024 | Source 3: PSU Watch, April 11, 2023 | Source 4: Press Information Bureau, Train Modernisation Book
The Company forms part of the Nifty India Railways PSU Index – TRI as on December 31, 2024. The Company referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in the Company and neither should it be
considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The scheme may or may not have exposure in the Company. Please consult your financial advisor before investing.
 Major passenger initiatives by the Ministry of
Railways - Amrit Bharat Station Scheme
Extensive redevelopment plan BEFORE

1
This scheme aims to modernize over 1,300 railway stations,
equipping them with modern amenities and infrastructure such as:

Advanced surveillance

Free Wi-fi

Improved passenger information systems

AFTER

Related stakeholders
2
RailTel
Upgrading stations with Wi-Fi at 6,000+ locations.
RailTel secures contracts from Northern Railway for telecom and DFC
feeder projects.

Source 1 - India TV, December 9, 2024 | Source 2 - Rail Analysis India, September 19, 2024
The Company forms part of the Nifty India Railways PSU Index – TRI as on December 31, 2024. The Company referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in the Company and neither should it be
considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The scheme may or may not have exposure in the Company. Please consult your financial advisor before investing.
 Major passenger initiatives by the Ministry of
Railways - Kavach

Impact of Kavach and other safety initiatives

Kavach is an advanced Train Collision Avoidance System (TCAS) implemented by Indian Railways
developed indigenously by Indian Railways to enhance rail safety and
1
operations. 140 135

120

Related stakeholders 107 104

No of consequential train accidents

100

80
BEL is collaborating with other PSUs and private companies to develop 73
59
60 55
Kavach.2 48
40
40 35
25
Key Features 20 22

2
6
5

3
0

5
9

4
-1

-2
-1

-1

-2
-1

-2
-1

-2

-2
-2
Collision prevention

16

17

21
14

15

20
Signal passing protection

18

22
19

24
23
20
20

20
20

20
20
20

20
20

20

20
Years

Source - Press Information Bureau, November 27, 2024

Auto braking & speed regulation

Growth Plan: 2,000 km of Indian Railways will be brought
under Kavach.

Source 1 - Press Information Bureau, December 10, 2024 | Source 2 - BEL Annual Report, FY 24
The Company forms part of the Nifty India Railways PSU Index – TRI as on December 31, 2024. The Company referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in the Company and neither should it be
considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The scheme may or may not have exposure in the Company. Please consult your financial advisor before investing.
 Major passenger initiatives by the Ministry of
Railways - The bullet train

The flagship bullet train project is the Mumbai–Ahmedabad High-Speed

Rail Corridor, which will connect Mumbai, Maharashtra to Ahmedabad,
1
Gujarat.

Operational speed of 320 Km/hr

7 kms under the sea, 21 kms underground

Future growth plans: 5 other routes identified

Related stakeholders
Delhi - Ahmedabad expected to cover 878 km in 3.5 hours
Delhi - Chandigarh - Amritsar expected to cover 459 km
Bharat Earth Movers Limited (BEML)
Delhi - Agra - Kanpur - Lucknow expected to cover 800 kms
BEML won a contract recently to build 'Made in India' bullet trains.
Varanasi - Howrah expected to cover 760 kms
Mumbai - Nagpur expected to cover 765 kms

Source - National High Speed Rail Corporation Limited, January 3, 2025

The Company forms part of the Nifty India Railways PSU Index – TRI as on December 31, 2024. The Company referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in the Company and neither should it be
considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The scheme may or may not have exposure in the Company. Please consult your financial advisor before investing.
Government initiatives for passenger travel:
Achieving efficiency through modernisation

Speed and effiiency Enhancing passenger

Safety
experience

High speed bullet trains Vande Bharat trains

Kavach Train Collision Avoidance
Track enhancements and System
Amrit Bharat Station Schemes
semi-high speed rail
initiatives
0ther initiatives such as
SMART coaches, Vistadom
coaches, a ticketing app, etc.
 Indian Railways
The backbone of India’s logistics network
Railways are the preferred transport for bulk goods

Percentage of goods transported via railways

Imported coal 6.63%

Containers 5.24%

Mineral oil 3.14%

Foodgrains 3.16%

Fertiliser 3.98%

Coal 45.29%
Clinker 3.95%

Pig iron and

steep 4.03%

Cement 5.75%

Other 7.51%

Iron ore 11.32%

Source - Press Information Bureau, July 2, 2024

Advantages of freight transportation by railways

Freight transport costs

Efficiency
Trains can transport goods in a single shipment, which is cost- Rail Rs 1.6 per tonne kilometre
effective.
Waterways Rs 2 per tonne kilometre
Cost
Rail is the cheapest mode for freight transport by a huge margin.
Road Rs 3.6 per tonne kilometre

Energy efficiency Airways Rs 18 per tonne kilometre

Trains generate up to 80% less CO2 and consume 75-90% less
Source: Statista, February 16, 2022
energy for freight traffic than road transport.

Source: Rail Analysis India, September 2, 2024

Major initiatives by the Government of India for freight

National Rail Plan (NRP) PM Gati Shakti Dedicated Freight Corridors

This initiative aims to develop a future- This program aims to establish a seamless These rail networks are strategically
ready railway system by 2030, with the multi-modal transport network that integrates established to make movement of
goal of building capacity ahead of various segments of physical infrastructure goods faster, cost-effective and
3
demand and increasing the railway's through a centralized digital platform, to efficient.
1
share of freight transport to 45%. improve speed, cost-effectiveness and
2
efficiency of transportation.

Source 1 - Press Information Bureau, February 2022 | Source 2 - Press Information Bureau, October 12, 2024 | Source 3 - KPMG, June 28, 2024
 Introducing

Groww Nifty India

Railways PSU Index Fund
(An open-ended scheme tracking the Nifty India Railways PSU Index - TRI)
The underlying index: Nifty India Railways PSU Index - TRI

A true-to-label index

The stocks in this index can be segregated into core and non-core stocks.

Core stocks
Public Sector Undertakings (PSU) and other organizations functioning under the Ministry of Railways.

Non-core stocks
Stocks from the eligible universe that are not part of the core group mentioned above, but supply products, raw materials,
or provide services such as technology, electricity, consulting, etc., to Indian Railways, or have any revenue or trade
receivables from Indian Railways.

The aggregate weight of stocks belonging to the core group is capped at 80% and the aggregate weight of stocks belonging to the
non-core group is capped at 20%.

Source: NSE, January 7, 2025

 Sector representation

This index covers the entire Railway PSU ecosystem, including financial companies, services, industrial goods, and more.

25.37%

19.35%
17.25%
15.78%
Weight

6.93%
6.24% 5.80%
2.57%
0.72%

Sector

Construction Financial Consumer Services Power Capital Oil, Gas & Telecommu- Metals &
Services Services Goods Consumable nication Mining
Fuels

Source: NSE, December 31, 2024

The sectors referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in this sector and neither should it be considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The
scheme may or may not have exposure in those sectors. Past performance may or may not be sustained in the future and is not a guarantee of any future returns. Please consult your financial advisor before investing.
 Top 10 constituents by weightage

RITES Ltd. 2.84% Railtel Corporation Of India Ltd. 2.57%

Oil & Natural Gas Corporation Ltd. 4.08%

Bharat Electronics Ltd. 4.60% Indian Railway Finance Corporation Ltd. 19.35%

IRCON International Ltd. 5.09%

NTPC Ltd. 6.93%

Rail Vikas Nigam Ltd. 17.44%

Container Corporation
of India Ltd. 15.78%

Indian Railway Catering And

Tourism Corporation Ltd. 17.25%
Source: NSE, December 31, 2024
The Companies form part of the Nifty India Railways PSU Index – TRI as on December 31, 2024. The Companies referred herein should not be construed as recommendations, advice to buy, sell or in any manner transact in the Company and neither
should it be considered as Research report from Groww Asset Management Ltd/Groww Mutual Fund. The scheme may or may not have exposure in the Companies. Please consult your financial advisor before investing.
Historical performance of the Index

Nifty India Railways PSU Index - TRI has outperformed the Nifty 50 during drawdown periods, showing lesser losses
and historically, even positive returns, highlighting its potential for resilience in volatile market conditions.

Drawdown period Nifty 50 Index Nifty India Railways PSU Index

May - Jul 2022 -10.71% -0.34%

Oct - Dec 2022 -6.52% 20.76%

Jan - Apr 2023 -7.61% 4.20%

Source - NSE, December 31, 2024

Past performance may or may not be sustained in future and is not a guarantee of any future returns. The above is the performance of the index and does not in any manner indicate the performance of any individual scheme of the
mutual fund. Please consult your financial advisor before investing.
Index returns

The Nifty India Railways PSU Index - TRI has demonstrated higher growth compared to the broader NIFTY 500 Index.

CAGR (%)* 1 year 3 years

Nifty India Railways PSU Index - TRI 25.06% 42.27%

Nifty 500 Index 15.47% 24.77%

Compound annual growth rate*

Source - NSE, January 2, 2025

Past performance may or may not be sustained in future and is not a guarantee of any future returns. The above is the performance of the index and does not in any manner indicate the performance of any individual scheme of the
mutual fund. Please consult your financial advisor before investing.
Market cap exposure

The index portfolio aims to diversify across mid cap, small cap, and large cap segments, with a particular focus on mid
cap holdings.

Market capitalisation No. of companies Holding percentage

Large cap 5 36.28%

Mid cap 5 52.80%

Small cap 4 10.90%

Source - NSE, December 31, 2024

Why consider Groww Nifty India
Railways PSU Index Fund

Railways are a critical infrastructure sector for India's economy, serving as the backbone
of both passenger travel and logistics.

Supported by government capital investment, the sector aims to achieve the dual goals of:
Modernising passenger services
Enhancing transport efficiency

Groww Nifty India Railways PSU Index Fund offers a unique investment opportunity.
It is India’s first Railway PSU Index Fund*
Provides exposure to a true-to-label Railways PSU index, which has stocks with growth
potential.

*As on December 13, 2024

Who may consider Groww Nifty India
Railways PSU Index Fund

This product may be suitable for investors seeking:

Exposure to the railway sector and PSU companies

Long-term capital appreciation

Investment in equity and equity-related instruments of the Nifty India Railways PSU Index - TRI

Please read the scheme information document carefully and consult your financial advisor before investing.
Scheme Details

Name of the Scheme Groww Nifty India Railways PSU Index Fund

Scheme Type An open‐ended scheme tracking the Nifty India Railways PSU Index - TRI

Scheme Benchmark Nifty India Railways PSU Index - TRI

Category Index Fund

The investment objective of the Scheme is to generate long term capital growth by investing in securities of the Nifty India
Railways PSU Index in the same proportion / weightage with an aim to provide returns before expenses that track the total
Investment Objective
return of Nifty India Railways PSU Index, subject to tracking errors. However, there can be no assurance or guarantee that the
investment objective of the scheme will be achieved.

Fund Manager Abhishek Jain

Rs. 500 and in multiples of Re. 1/- thereafter

Minimum Investment Amount
Minimum amount for SIP facility shall be Rs 100/- and in multiples of Re 1/- thereof

If redeemed within 30 days from the date of allotment: 1%

Exit Load
If redeemed after 30 days from the date of allotment: NIL