In a landmark move for India’s financial markets, Groww Mutual Fund has announced the launch of the Groww Nifty India Internet ETF, the country’s first exchange-traded fund (ETF) designed to track the Nifty India Internet Index – Total Return Index (TRI). The ETF opens for public subscription on 13 June and closes on 27 June 2025.
Nifty Internet ETF marks a significant step in democratizing access to India’s fast-expanding internet economy, offering investors a low-cost, transparent, and rules-based vehicle to gain diversified exposure to the country’s most prominent internet-first businesses. Groww is notably pursuing a substantial IPO worth INR 7,000 crore. The company has filed its DRHP through the confidential route.
What the Nifty Internet ETF Offers
The Groww Nifty India Internet ETF aims to mirror the performance of the Nifty India Internet Index, which tracks listed Indian companies that derive a substantial portion of their revenues from online business models. These include sectors such as:
- E-commerce and e-retail (36%)
- Fintech (26%)
- Internet-enabled retail (19%)
- Digital travel platforms (10%)
- Stockbroking (8%)
- Online media and entertainment (1.5%)
With over 83% of its constituents in the mid and large-cap categories, the index offers investors access to some of the most dynamic and high-growth enterprises shaping India’s digital landscape.
Read Also: Groww IPO: Top Stock Broker in India Aims for INR 7,000 Crore Offering
Index Methodology and Structure
The Nifty India Internet Index is a free-float market capitalization-weighted index, with a 20% cap per constituent. It is rebalanced quarterly and reconstituted semi-annually, ensuring that it remains agile and responsive to market developments. As of 31 May 2025, the index comprises 21 listed companies.
This carefully curated portfolio represents the evolving digital economy, with periodic adjustments to reflect new industry leaders or market trends. Importantly, the top 10 constituents have shown remarkable growth, with combined revenues surging over fourfold, from INR 18,158 crore in FY21 to INR 77,788 crore in FY25.
Performance Metrics
The index has delivered strong returns with a 1-year compound annual growth rate (CAGR) of 25.94% and a 3-year CAGR of 22.55% as of May 2025. The Sharpe ratio, a measure of risk-adjusted returns, stood at an impressive 2.73 (1-year) and 2.63 (3-year), outperforming broader indices like the Nifty 50 and Nifty 500.
Read Also: Nifty E-Commerce Index Launched, 53% Constituents Launched IPOs in Last 5 Years
Why Now? The Internet Economy Is Booming
The ETF’s launch is timely. India’s digital economy is on an exponential growth trajectory, underpinned by:
- 886 million smartphone users
- 58% internet penetration
- Tier-II and Tier-III cities emerging as key digital consumption hubs
- UPI (Unified Payments Interface) processing over 18 billion transactions monthly, with transaction values exceeding INR 25 lakh crore
These macro trends point to a fundamental shift in India’s consumption and service economy — from offline to online — and the ETF is designed to capture this transformation.
Fund Details and Suitability
- Fund Name: Groww Nifty India Internet ETF
- NFO Period: 13 – 27 June 2025
- Benchmark: Nifty India Internet Index – TRI
- Minimum Investment: INR 500
- Exit Load: None
- Fund Managers: Nikhil Satam, Aakash Chauhan, and Shashi Kumar
- Listing: National Stock Exchange (NSE) post-NFO
The fund is ideal for investors looking for long-term capital appreciation through exposure to equity and equity-related instruments within India’s digital economy.
Bottom Line
Groww Nifty India Internet ETF sets a new precedent in Indian capital markets by providing a focused, sector-specific ETF tailored for the internet and technology-driven future. With India’s online economy gaining momentum, this ETF could serve as a strategic vehicle for investors seeking targeted, high-growth opportunities in a rapidly digitizing nation.
As India’s internet businesses grow from disruptors to mainstream market drivers, the Groww Nifty India Internet ETF could well be the bellwether for a new era of thematic investing.
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