Latest news with #BSEInternetEconomyIndex
News18
28-07-2025
- Business
- News18
Internet Funds: Key Factors You Should Know Before Investing In These Thematic Mutual Funds
However, before choosing an internet-themed fund, it is important to understand how this new category of mutual funds works. It's also advisable to evaluate the risk-reward scenario before investing. What Are Internet Funds? Internet funds invest in companies that are part of the 'internet economy." This includes online e-commerce, shopping platforms, fintech firms, and digital service providers. These funds do not include traditional IT companies, software service providers and IT infrastructure firms. Usually, internet funds are passively managed, meaning they follow a set index or list of companies rather than being managed by a fund manager. Most of these funds follow the Nifty India Internet Index and the BSE Internet Economy Index as their benchmarks. These indices primarily track the performance of the Indian companies, which depend solely on digital platforms for their operations. Each index tracks different types of companies, so where you invest makes a big difference. BSE Internet Economy Index includes companies from telecom, financial services, and consumer products or services sectors. On the other hand, the Nifty India Internet Index focuses more on consumer digital services and fintech. So, depending on which fund you choose, you may get more exposure to a particular segment of the internet economy. Some of the internet-themed funds are Edelweiss BSE Internet Economy Index Fund, Mirae Asset Nifty India Internet ETF and Groww Nifty India Internet ETF, among others. What Makes These Funds Risky? As per Money Control, internet funds usually invest in a small number of stocks, sometimes just around 20. That means they aren't as diversified as regular equity mutual funds, which can spread risk across 50–100 companies. So, if one or two internet stocks don't do well, it can affect the whole fund's performance. These funds could see sharp fluctuations due to global uncertainties and volatility in the broader market. Any sectoral slowdowns can also affect the performance of these funds. Should You Invest? If you believe in the growth of the online economy, these funds could be a good addition to your portfolio. But do not put all your money into one basket. Because they focus on a narrow theme, which could be riskier compared to other funds. These funds also offer lower diversification, which may pose a higher risk. It is also worth noting that some strong tech companies, like traditional IT firms, are not part of these internet funds. So, you might miss out on good long-term performers if you invest only in internet-focused funds. Key Things to Check Before Investing – Which index does the fund follow? Make sure it fits your investment goals. – How concentrated is the portfolio? Fewer companies could indicate a higher risk. – Are the companies profitable or just growing fast? Some companies in the segment could be loss-making entities.
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Business Standard
24-04-2025
- Business
- Business Standard
Edelweiss MF launches BSE Internet Economy Index Fund; check key details
Edelweiss BSE Internet Economy Index Fund: Edelweiss Mutual Fund has launched its Edelweiss BSE Internet Economy Index Fund. It is an open-ended index fund replicating the BSE Internet Economy Total Return Index. The new fund offer (NFO) will open for subscription on April 25, 2025, and close on May 9, 2025. It is India's first index fund offering exposure to the BSE Internet Economy Index. The index covers 11 sub-industries, including e-retail, internet and catalogue retail, e-learning, digital entertainment, financial technologies and other digitally driven sectors. The BSE Internet Economy Index comprises the top 20 companies selected from the BSE 500 based on their six-month average market capitalisation. Investors can invest a minimum amount of ₹100 and in multiples of ₹1 thereafter. According to the scheme information document (SID), if the units are redeemed or switched out on or before 30 days from the date of allotment, an exit load of 0.10 per cent will be charged. However, no exit load will be charged, if units are redeemed after 30 days from the date of allotment. The investment objective of Edelweiss BSE Internet Economy Index Fund is to provide returns that, before expenses, closely correspond to the total returns of the BSE Internet Economy Total Return Index, subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved, as per the SID. Bhavesh Jain and Bharat Lohati serve as the designated fund managers for the scheme. There are some risk factors associated with the scheme such as heavy reliance on a single sector means that poor performance in that area can lead to substantial losses, according to the SID. According to the riskometer, the principal invested in the scheme will be at very high risk. Radhika Gupta, managing director and chief executive officer at Edelweiss Mutual Fund said that India's digital economy is growing four times faster than its overall GDP, and is expected to achieve rapid and transformative growth. "With increasing internet penetration and tech adoption across sectors, we see a compelling opportunity for investors to participate in this digital revolution," Gupta said. The fund offers investors an opportunity to invest in a pure-play internet and digital economy-focused portfolio, she added. Edelweiss BSE Internet Economy Index Fund: Who should invest? According to the SID, the Edelweiss BSE Internet Economy Index Fund is suitable for investors seeking long-term capital appreciation along with passive investment in equity and equity-related securities replicating the composition of the BSE Internet Economy Total Returns Index, subject to tracking errors. However, "investors should consult their financial advisers if in doubt about whether the product is suitable for them," it said.
