Mirae Asset Investment Managers (India) Pvt. Ltd. has announced the launch of its latest thematic offering—Mirae Asset Nifty India Internet ETF, an open-ended scheme that seeks to replicate or track the Nifty India Internet Total Return Index. This ETF is designed to give investors focused exposure to India’s rapidly expanding internet-based business ecosystem.

The New Fund Offer (NFO) opened for subscription on June 18, 2025, and will close on June 25, 2025. It will reopen for continuous sale and repurchase on July 2, 2025. The scheme is co-managed by Ekta Gala and Akshay Udeshi, with a minimum investment amount of Rs 5,000 during the NFO period, and in multiples of Rs 1 thereafter.

The Nifty India Internet Index comprises 21 stocks selected from the Nifty Total Market Index, encompassing large-, mid-, and small-cap companies whose core revenues stem from digital platforms. These include sectors like e-commerce, fintech, online travel, web-based services, food delivery, and digital entertainment. The index is reconstituted semi-annually and rebalanced quarterly, with the top stock capped at 20% weight at each rebalancing point.

Siddharth Srivastava, Head – ETF Product & Fund Manager at Mirae Asset, told Business Today that the fund’s thematic nature is its primary differentiator. “This ETF aims to provide exposure to sectors predominantly based on digital and internet ecosystems like fintech and e-commerce. We have consciously excluded segments such as IT services and telecom, as their business models are fundamentally different,” he said.

Investing in thematic funds allows investors to capitalise on specific trends or sectors, such as technology, healthcare, or in this case, the internet economy. These funds offer focused exposure and potential for high growth but also come with concentrated risk. They are best suited for long-term investors with a strong conviction in the theme.

Srivastava stressed that the key to thematic investing is early entry. “The internet economy in India is expected to expand manifold over the next decade. Instead of picking individual winners in this emerging space, this ETF allows investors to gain broad-based exposure while mitigating stock-specific risks,” he noted. As more digital-native companies list on the exchanges, the portfolio is expected to evolve, making it adaptable to future market shifts.

Explaining how this product compares to broader category mutual funds, Srivastava said, “Unlike flexi-cap funds, which offer diversified exposure across market caps and sectors and can form an investor’s core portfolio, this ETF is theme-specific and best suited for a satellite allocation. It’s a high-conviction idea for investors who believe in the long-term scalability of India’s internet economy.”

He also cautioned that due to its concentrated nature, the ETF may experience higher volatility and deeper drawdowns compared to diversified equity funds. However, for investors with a long-term horizon and risk tolerance, it can offer significant upside potential aligned with India's digital transformation.

With India’s internet penetration and digital adoption accelerating across sectors, Mirae Asset’s new ETF provides a timely and structured gateway for investors to participate in the country’s next phase of growth—driven by technology and online businesses.

Published on: Jun 19, 2025 3:37 PM IST