Groww Mutual Fund launches BSE Hospitals ETF and ETF FoF to tap India’s hospital sector growth

Investment platform Groww's Groww Mutual Fund has announced the launch of two new passive investment schemes, the Groww BSE Hospitals ETF and the Groww BSE Hospitals ETF FoF. These schemes will give investors exposure to India’s hospital sector through the BSE Hospitals Index.

The new fund offer or NFO of these schemes is now open for subscription and will close on February 25.

“Healthcare delivery, particularly hospital-based care, is becoming increasingly central to India’s economic and social landscape. Today, hospitals account for nearly three-fourths of the entire domestic healthcare industry. Rising utilisation, broader insurance coverage, and demographic trends are steadily shaping demand for organised hospital services,” said Varun Gupta, CEO, Groww Mutual Fund.

He further added that supportive government policies, growing global medical tourism, and an increasing preference for private healthcare are providing strong structural tailwinds to the sector’s long-term growth.

“Through the launch of the Groww BSE Hospitals ETF and the Groww BSE Hospitals ETF FOF, we are enabling investors to access this segment in a structured and transparent manner through a passive investment framework aligned with long-term participation.”

“Hospitals occupy a foundational role within India’s healthcare ecosystem, directly reflecting how healthcare access, utilisation, and capacity are evolving across the country. As the organised hospital segment expands in scale and complexity, the need for clear and representative market benchmarks becomes increasingly important,” said Ashutosh Singh, MD & CEO, BSE Index Services.

He added that the BSE Hospitals Index has been developed to capture this segment of the economy and to provide a consistent reference for tracking the progress of India’s organised hospital space within the broader healthcare sector.

Needless to say, healthcare has become an important part of spending for Indian households. However, India still remains below global averages in per capita healthcare spending, hospital beds, and doctors per capita. This shows that more investment is needed in healthcare infrastructure and capacity.

Hospitals are the largest segment of India’s healthcare ecosystem, making up nearly 74% of the market, and they are expected to keep growing. This growth is supported by wider health insurance coverage, increasing chronic and lifestyle diseases, an ageing population, medical tourism inflows, and ongoing government initiatives to improve healthcare access.

The BSE Hospitals Index tracks listed hospital companies selected from the BSE 1000 universe. It follows a diversified and rules-based approach. The index is rebalanced from time to time to stay aligned with changes in the hospital sector.

Groww BSE Hospitals ETF is an open-ended exchange traded fund that tracks the BSE Hospitals Index TRI. It invests in equity and equity-related instruments of the index in the same proportion as the index constituents, subject to tracking error.

Groww BSE Hospitals ETF FOF is an open-ended fund of fund scheme that invests in units of the Groww BSE Hospitals ETF.