The New Fund Offer (NFO) will open on June 13 and will close on June 27. The ETF aims to give investors exposure to companies that are part of India’s growing internet economy.
The scheme seeks to invest in businesses that operate primarily online, including e-commerce, fintech, digital payments, stockbroking, online travel, and internet media.
The underlying benchmark, the Nifty India Internet Index, consists of 21 listed companies as of May 31, 2025. The index follows a free float market capitalization-weighted methodology, with a 20% cap on each constituent. It is rebalanced quarterly and reconstituted semi-annually.
The index includes six main sectors:
- E-retail and e-commerce (~36%)
- Financial technology (~26%)
- Internet-enabled retail (~19%)
- Digital travel (~10%)
- Stockbroking (~8%)
- Online media (~1.5%)
Over 83% of the index portfolio comprises mid and large-cap companies.
As per NSE data, the index posted a 1-year CAGR of 25.94% and a 3-year CAGR of 22.55% as of May 31, 2025. The Sharpe ratio stood at 2.73 (1-year) and 2.63 (3-year), indicating strong risk-adjusted returns compared to traditional benchmarks like the Nifty 50 and Nifty 500.
The top 10 companies in the index saw a 4x rise in sales, growing from ₹18,158 crore in FY2021 to ₹77,788 crore in FY2025.
Groww’s ETF launch comes at a time when digital adoption is accelerating.
India now has 886 million smartphone users and 58% internet penetration.
UPI handles over 18 billion transactions monthly, with values exceeding ₹25 lakh crore.
The ETF offers a rules-based, transparent, and low-cost investment approach. It aims to replicate the index’s performance by holding constituents in similar weightage, subject to tracking error.
The fund is co-managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar. It will be listed on the National Stock Exchange (NSE) after the NFO. The minimum investment during the NFO is ₹500, with no exit load.
First Published: Jun 12, 2025 10:01 AM IST
