Edelweiss Mutual Fund launches India’s first internet economy index fund

Edelweiss Mutual Fund has launched the Edelweiss BSE Internet Economy Index Fund, India’s first index fund offering exposure to the BSE Internet Economy Total Return Index.

The New Fund Offer (NFO) will open for subscription on April 25 and closes on May 9, 2025.

The fund provides pure-play exposure to companies linked to India’s digital economy. It includes stocks across sectors such as online services, fintech, internet platforms, telecom infrastructure, and digital marketplaces.

The underlying index comprises 20 stocks selected from the BSE 500. It uses a transparent, rules-based methodology and excludes traditional IT and software companies. The fund aims to track the performance of businesses that represent India’s fast-growing internet ecosystem.

According to Edelweiss MF, India’s digital economy is expanding rapidly and could become a $1 trillion opportunity by 2030. The fund seeks to offer investors a way to participate in this digital growth.

The minimum investment amount is ₹100. Additional investments can be made in multiples of ₹1. The scheme will be managed by Bhavesh Jain and Bharat Lahoti, Co-Heads of Factor Investing at Edelweiss MF.

The index covers 11 sub-industries including e-retail, edtech, digital entertainment, and financial technology. The fund’s investment objective is to mirror the total returns of the BSE Internet Economy Total Return Index, subject to tracking errors.

The fund is suitable for investors looking to diversify their portfolio based on digital economy trends, as per the fund house.