Groww Mutual Fund has launched two passive investment schemes ' the Groww BSE Hospitals ETF and the Groww BSE Hospitals ETF Fund of Fund (FOF) ' providing investors with targeted exposure to India's organised hospital sector through the BSE Hospitals Index. The new fund offer (NFO) for both schemes is currently open and will close on February 25, with allotment scheduled for 5 March 2026.
The Groww BSE Hospitals ETF is an open-ended exchange traded fund that seeks to track the BSE Hospitals Index ' Total Return Index (TRI) by investing in index constituents in the same proportion, subject to tracking error. The Groww BSE Hospitals ETF FOF, meanwhile, is an open-ended fund of fund scheme that will invest in units of the underlying ETF.
The BSE Hospitals Index comprises listed hospital companies selected from the BSE 1000 universe and follows a rules-based, diversified methodology, with periodic rebalancing to reflect sectoral changes.
The launch comes amid structural tailwinds for the healthcare sector. India's healthcare expenditure is projected to rise from around 2.9% of GDP in 2018 to nearly 5% by 2030, supported by rising incomes, lifestyle-related diseases, expanding insurance coverage and policy support. Hospitals account for nearly 74% of the country's healthcare ecosystem, placing them at the centre of demand growth across emergency care, surgeries and specialised treatments.
India also faces a significant infrastructure gap, with only 1.62 hospital beds and 0.73 doctors per 1,000 people, well below global averages. This shortfall is driving capacity additions and private investment in the sector. Companies within the index have reported strong financial performance, with revenue roughly doubling and profits growing nearly fivefold between FY20 and FY25, reflecting improved occupancy, better case mix and operating leverage.
The BSE Hospitals Index has outperformed the Nifty 50 TRI over medium- and long-term periods, aided by steady earnings growth and relatively defensive characteristics. Increased government spending on healthcare, rising public share in total health expenditure and expansion of medical education and insurance coverage are further expected to support long-term hospital utilisation.
The schemes are positioned for investors seeking long-term capital appreciation through a passive, index-based approach to India's expanding healthcare and hospital services segment.