Groww Multicap Fund tops category in first year, outperforms benchmark amid volatile markets

Mumbai, December 18: Groww Multicap Fund has emerged as a category leader in its first year of operation, outperforming both its benchmark and broader equity indices despite a year marked by market volatility, uneven earnings recovery and global uncertainty.

Launched in December 2024, the fund delivered 8.01% returns over one year, significantly ahead of its benchmark, the Nifty 500 Multicap 50-25-25 Index, which gained 0.29% during the same period. On a year-to-date basis, the fund also led the multicap category with returns of 8.62%.

The broader market delivered muted performance over the period. The Nifty 50 rose 4.83%, while the Nifty 500 gained 0.93%. Returns weakened further down the market-cap spectrum, with the Nifty Midcap 100 up 0.45% and the Nifty Smallcap 250 declining 10.99%.

The fund’s inaugural year coincided with a challenging macro environment, including the RBI’s rate cut cycle, global trade developments such as US tariff announcements and additional duties on Indian exports, and phases of heightened geopolitical uncertainty. Despite these headwinds, the fund consistently placed in the top quartiles of the multicap category across multiple observation periods.

From a portfolio perspective, the fund is positioned around select structural themes in the Indian economy, including premiumisation, capital expenditure and infrastructure, and financialisation. These themes are reflected through exposure to automobile companies, capital goods and infrastructure-related stocks, as well as select banks, insurance companies and non-banking financial companies.

As it enters its second year, the Groww Multicap Fund said it will continue to focus on identifying high-quality opportunities across market capitalisations, guided by a disciplined and valuation-conscious investment approach aligned with India’s long-term growth prospects.

The scheme is managed by Anupam Tiwari along with Saptarshee Chatterjee.