Groww Mutual Fund has announced the launch of the “Groww Nifty India Internet ETF”, a new exchange-traded fund (ETF) that aims to provide investors with exposure to India’s rapidly expanding internet-driven economy. The New Fund Offer (NFO) will be open for subscription from 13 June to 27 June 2025.

This ETF is designed to track the Nifty India Internet Index, which includes a basket of 21 companies primarily operating online across e-commerce, fintech, digital payments, stockbroking, online travel, and digital media.

What Makes This ETF Unique?

According to Groww, the ETF provides a rules-based, transparent, and low-cost investment solution for those looking to tap into India’s growing online ecosystem. The ETF seeks to replicate the performance of the Nifty India Internet Index by holding constituents in similar weightage, subject to tracking error.

This ETF is India’s first fund focused exclusively on the digital economy, and it comes at a time when digital adoption is reaching unprecedented levels.

Why the Internet Economy?

• As per NSE data, the Nifty India Internet Index delivered a 1-year CAGR of 25.94% and a 3-year CAGR of 22.55% as of 31 May 2025.

• Mid- and large-cap stocks make up over 83% of the index.

• India now has 886 million smartphone users and 58% internet penetration.

• UPI transactions cross 18 billion per month, with transaction values exceeding ₹25 lakh crore.

These figures showcase the immense potential of India’s digitally enabled sectors and justify investor interest in structured exposure through this ETF.

ETF Structure and Portfolio Composition

• The Nifty India Internet Index includes 21 listed companies, and to ensure diversification, sector exposure is capped at 20%.

• The top 10 firms in the index recorded a nearly fourfold increase in sales, rising from ₹18,158 crore in FY2021 to ₹77,788 crore in FY2025.

• The portfolio includes businesses across:

  • E-retail

  • Fintech and payment platforms

  • Online travel

  • Digital media and stockbroking

Investment Details

• Minimum Investment: ₹500 during the NFO period

• Exit Load: None

• Fund Managers: Nikhil Satam, Aakash Chauhan, and Shashi Kumar

• Benchmark: Nifty India Internet Index

The fund managers emphasised that this ETF allows first-time and retail investors to gain exposure to the internet-driven transformation sweeping across India’s business landscape.

Industry Response and Expert View

Industry experts see this ETF as timely and relevant, especially given the accelerating pace of digital adoption post-COVID and the emergence of tech-first startups becoming market leaders.

Groww’s move also reflects the evolving preferences of young Indian investors, many of whom are digital natives and more inclined towards thematic ETFs that align with their understanding of consumer trends.

This ETF complements Groww’s growing suite of investor offerings and reflects a broader trend where tech and internet sector funds are gaining traction globally.

Should You Invest?

This ETF could be suitable for:

• Investors looking for thematic exposure to India’s digital economy

• Those wanting passive diversification across the internet and technology space

• Long-term investors aiming to benefit from structural changes in consumer behaviour

• Investors seeking low-cost alternatives to traditional mutual funds

However, investors should remember that internet-focused businesses are often high beta and growth-centric, meaning they carry higher volatility and sector-specific risk.

Conclusion

The Groww Nifty India Internet ETF comes at a strategic time, capitalising on strong digital growth trends, high internet and smartphone penetration, and booming UPI adoption. It offers a balanced, low-cost opportunity to participate in India’s digital revolution.

With its structured exposure to online-first sectors, transparent index methodology, and no exit load, this ETF can be a suitable addition to the portfolios of investors who believe in the long-term potential of Digital India.

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