NFO Alert: Groww Mutual Fund Launches Nifty India Internet ETF

Groww Mutual Fund has launched the Groww Nifty India Internet ETF, India's first exchange-traded fund (ETF) focused on the booming internet economy.  The fund exposes investors to digital transition in India, which has redefined consumer habits and business operations — from retail and payments to travel and broking. 

The Digital Economy: Growing at Scale 

With 886 million smartphone users, 58% internet penetration, and low data costs (₹3.4/GB), India’s digital adoption has accelerated across urban and semi-urban regions. The surge in UPI transactions, which now exceed 18 billion per month, and widespread use of apps for commerce, lending, travel, and investing signal a structural shift in consumer behaviour. 

Let’s break down key statistics which highlight this digital shift: 

• In 2024, nearly 270 million Indians shopped for at least one item digitally.  

• 67% of daily delivery orders were placed via quick-commerce platforms 

• India’s digital lending market attained a size of US$350 billion in 2023.  

• Over 80% of rail and 70% of domestic air tickets are now booked online. 

• Digital brokers now account for 78% of the broking market.  

Government Push and Policy Support 

Public policy has also played a role in this evolution. Initiatives such as Digital India, the IndiaAI Mission, and a sixfold increase in MeITY’s budget over seven years have enabled stronger digital infrastructure. As a result, India’s digital ecosystem now ranks among the largest globally, alongside the US and China. 

Structure and Composition of Groww Nifty India Internet ETF 

The newly launched ETF will track the Nifty India Internet Index – TRI, which consists of 21 listed companies that earn a major share of their revenue through online operations. As of May 31, 2025, the sector-wise allocation of the index includes: 

• E-commerce & E-retail: ~36% 

• Financial Technology: ~26% 

• Internet-enabled Retail: ~19% 

• Online Travel & Stockbroking: ~18% 

• Digital Media: ~1.5% 

The index is free-float market cap-weighted (capped at 20% per stock), with quarterly rebalancing and semi-annual reconstitution to reflect market developments. 

Read more: How to Buy NSDL Unlisted Shares: A Guide for Investors 

Conclusion 

India’s internet economy is expanding rapidly, and financial products tracking this growth are starting to emerge. The Groww Nifty India Internet ETF is one such example. As internet-driven business models become more central to the Indian economy, such thematic investment options are likely to see more interest in the coming years. 
 
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.