Groww launches Nifty India Internet ETF FOF - NFO starting from June 13

The Groww Nifty India Internet ETF FoF is an open-ended Fund of Funds that invests primarily in the Groww Nifty India Internet ETF, offering investors passive exposure to India’s rapidly growing internet economy. Tracking the Nifty India Internet Total Return Index, the fund focuses on internet-first companies across sectors like e-commerce, fintech, digital media, and online travel. With a low-cost, rules-based, and transparent approach, the fund aims for long-term capital appreciation while minimising tracking error.

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Key Features of Groww Nifty India Internet ETF FOF

Opening Date: June 13, 2025
Closing Date: June 27, 2025
Exit Load: -Nil-
Minimum Investment: ₹500
Benchmark Index: Nifty India Internet Index - TRI

Objective of Groww Nifty India Internet ETF FOF

The investment objective of the Groww Nifty India Internet ETF FOF - Dir (G) is to generate long-term capital growth by investing in units of Groww Nifty India Internet  ETF.  However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Investment Strategy of Groww Nifty India Internet ETF FOF

The investment strategy of the Groww Nifty India Internet ETF FoF is to achieve long-term capital growth by investing 95–100% of its assets in the Groww Nifty India Internet ETF, which passively tracks the Nifty India Internet Index – Total Return (TRI). This index comprises internet-first Indian companies, and the fund follows a low-cost, rules-based, and transparent approach with minimal tracking error.

Risks Associated with Groww Nifty India Internet ETF FOF

The Groww Nifty India Internet ETF FoF carries several risks, including market risk due to exposure to equity securities, sectoral concentration risk since it focuses solely on internet-based companies, and volatility risk, as many underlying firms are mid- to small-cap and may experience sharp price fluctuations. Additionally, being a passive fund, it faces tracking error risk, and limited diversification can heighten the impact of adverse movements in the digital sector.

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Risk Mitigation Strategy of Groww Nifty India Internet ETF FOF

The Groww Nifty India Internet ETF FoF mitigates risk by following a passive, rules-based investment strategy that tracks a well-defined index with capped stock weights (maximum 20%), ensuring no single company dominates the portfolio. It also undergoes quarterly rebalancing and semi-annual reconstitution, which helps maintain alignment with evolving market trends and reduces concentration risk. Additionally, up to 5% of assets may be held in cash or liquid instruments to manage liquidity and operational needs.

What Type of Investor Should Invest in Groww Nifty India Internet ETF FOF?

The Groww Nifty India Internet ETF FoF is best suited for long-term investors who have a high-risk tolerance and are looking to gain thematic exposure to India’s fast-growing digital and internet-driven economy. It is ideal for those who believe in the future potential of sectors like e-commerce, fintech, online services, and digital media, and prefer a passive, low-cost investment approach. This fund is appropriate for investors seeking diversification within the internet sector, but not for those looking for stable or low-volatility returns.