Groww Mutual Fund has launched the Groww Nifty India Internet ETF, the first-ever exchange-traded fund that aims to track the Nifty India Internet Index. The New Fund Offer opens on June 13.
The fund aims to invest in internet-first businesses across sectors such as e-commerce, fintech, online travel, digital payments, stockbroking, and entertainment. These sectors are increasingly becoming central to the consumption and service economy.
The Nifty India Internet Index, which serves as the underlying benchmark, currently consists of 21 listed companies. It seeks to represent companies that derive a significant portion of their revenues from internet-based business models.
The index is free float market capitalization-weighted with a cap of 20 per cent per constituent and is rebalanced quarterly and reconstituted semi-annually, ensuring it remains responsive to market developments.
The index composition spans across six broad sectors: e-retail and e-commerce (36 per cent), financial technology (26 per cent), internet-enabled retail (19 per cent), stockbroking (8 per cent), digital travel (10 per cent) and online media (1.5 per cent).
Over 83 per cent of the portfolio comprises mid and large-cap stocks. The index has maintained a dynamic profile, with periodic inclusions and exclusions reflecting the evolving internet economy.
As of May end, the Internet Index has delivered a one-year CAGR of 26 per cent and a three-year CAGR of 23 per cent. The top 10 index constituents collectively recorded sales growth of over four times over the last five financial years, growing from ₹18,158 crore in FY21 to ₹77,788 crore in FY25.
India currently has 886 million smartphone users and 58 per cent internet penetration, with tier-II and --III cities emerging as growth engines.
Platforms like UPI have processed over 18 billion transactions monthly, with cumulative values exceeding ₹25 lakh crore.
Post NFO, the ETF will be listed on NSE. The minimum investment during the NFO is ₹500 and there is no exit load.