Groww Mutual Fund has announced the launch of the Groww Nifty India Internet Exchange Traded Fund (ETF), India’s first exchange-traded fund tracking the Nifty India Internet Index (NIII).
- The fund aims to invest in internet-first businesses across sectors such as e-commerce, fintech, online travel, digital payments, stockbroking, and entertainment.
- These sectors are increasingly becoming central to India’s consumption and service economy.
About the Scheme:
i.The objective of the scheme is to generate long-term capital growth by investing in securities of the NIII in the same proportion, with the aim of providing returns before expenses that track the total return of the Nifty India Internet Index.
ii.This ETF seeks to offer investors diversified exposure to companies driving India’s internet-led transformation.
iii.The New Fund Offer (NFO) of the scheme will open on June 13 and will close on June 27.
iv.The minimum investment during the NFO is Rs.500 and there is no exit load.
About the Index:
i.The NIII which serves as the underlying benchmark of the ETF, currently consists of 21 listed companies.
- It seeks to represent companies that derive a significant portion of their revenues from internet-based business models.
ii.The index is free float market capitalization-weighted with a cap of 20% per constituent and is rebalanced quarterly and reconstituted semi-annually.
- Its composition spans across six broad sectors: e-retail and e-commerce (36%), financial technology (26%), internet-enabled retail (19%), stockbroking (8%), digital travel (10%) and online media (1.5%).
- Over 83% the portfolio comprises mid and large-cap stocks.
Important Term:
i.ETF – An ETF is a collection of investments such as equities or bonds. ETFs will let you invest in a large number of securities at once, and they often have cheaper fees than other types of funds. ETFs are also more easily traded.
About Groww Mutual Fund:
Co-founder & Chief Executive Officer (CEO)– Lalit Keshre
Headquarters – Bengaluru, Karnataka
Establishment – 2017
