Groww Mutual Fund launches Nifty India Internet ETF: All you need to know

Groww Mutual Fund has unveiled a new ETF tracking the Nifty India Internet Index, calling it the “Groww Nifty India Internet ETF.” The fund’s NFO is available from 13 June to 27 June, aiming to invest in businesses that operate primarily online—e-commerce, fintech, digital payments, stockbroking, online travel, and media. “The ETF offers a rules-based, transparent, and low-cost investment approach” while seeking “to replicate the index’s performance by holding constituents in similar weightage, subject to tracking error.” This innovative fund provides investors with a unique opportunity to tap into the rapidly expanding digital market.

According to NSE data as of 31 May 2025, the Nifty India Internet Index posted a 1-year CAGR of 25.94% and a 3-year CAGR of 22.55%. It comprises 21 listed companies, with mid and large-caps accounting for over 83% of the index. Smartphone usage in India now tops 886 million users, paired with 58% internet penetration. Better still, digital payments continue their meteoric rise, as “UPI handles over 18 billion transactions monthly, with values exceeding ₹25 lakh crore.” This reflects the robust growth potential within India’s digital landscape.

This ETF’s portfolio—the first of its kind—features internet-focused sectors like e-retail, fintech, digitally enabled retail, and online travel, each capped at 20% to maintain balance. The top 10 companies in the index recorded a fourfold jump in sales, climbing from ₹18,158 crore in FY2021 to ₹77,788 crore in FY2025.

Co-managed by Nikhil Satam, Aakash Chauhan, and Shashi Kumar, the scheme requires a minimum ₹500 during the offer period and charges no exit load. “Groww’s ETF launch comes at a time when digital adoption is accelerating,” reflecting the platform’s recognition of India’s surging internet economy and its potential to transform various sectors.