India's First: Edelweiss BSE Internet Economy Index Fund NFO

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The Edelweiss mutual fund has recently launched the Edelweiss BSE Internet Economy Index Fund, an open-ended index fund that replicates the total return index of the BSE Internet Economy.

The NFO is open for subscription starting 25th April and will close on 9th May 2025.

But, "What does it mean for Indian investors?"

Well, it offers huge exposure to India's fast-growing digital economy that is expected to reach USD 1 trillion by 2030.

Moreover, by focusing on internet-driven companies like Infosys, Wipro and TCS, this NFO positions itself to benefit from India’s expanding digital infrastructure and increasing smartphone usage.

This analysis will help you figure out whether it could be the best NFO 2025 by covering all the necessary details of this new fund offer.

Edelweiss BSE Internet Economy Index Fund NFO: Key Details

Check key details on the newly launched NFO by Edelweiss Mutual Fund 2025:

Must Read: Why Investing in NFOs is such a great idea?

Investing Strategy: Edelweiss BSE Internet Economy Index Fund NFO

This New Fund Offer has a unique investment approach that covers a pure-play internet-focused theme. It smartly replicates the BSE Internet Economy Total Return Index and targets to strengthen its position in the digital marketplace.

Moreover, its investing strategy is to selectively invest in stocks forming part of the BSE 500 and stocks belonging to pre-defined sub-industries like e-retail and e-commerce (Fintech or financial technology).

BSE Internet Economy Index vs Other Category

Let’s review the trailing and calendar year returns of this NFO's benchmark, that is the BSE Internet Economy Index vs the Nifty 500 TRI and other categories:

The data shows that the BSE Internet Economy TRI has performed strongly, with 16.9% growth in the past year, 17.9% over 3 years and 35.4% over 5 years. The BSE 500 TRI (broader market) had 9.6%, 4.1%, and 24.2% returns, while Nifty India Digital TRI saw 8.5%, 10.2% and 30.2% growth and BSE Teck TRI had 6.0%, 13.8% and 26.3% over the same periods.

In calendar years, BSE Internet Economy TRI jumped 50.1% in 2020 and 55.7% in 2021 but dropped -25.1% in 2022. Nifty India Digital TRI had 57.8% in 2021 but fell -26.4% in 2022.

Overall, tech and internet sectors of Mutual Funds show strong growth but are also volatile, as seen in the dips in 2022 and the negative -15.9% in 2025 year-to-date.

SIP Performance: BSE Internet Economy Index

This table shows how different investment options have performed if you invested regularly through a SIP performance in digital economy (Systematic Investment Plan) over the past 3 and 5 years:

The BSE Internet Economy TRI has done the best, with returns of 27.4% in 3 years and 24.6% in 5 years. 

The Nifty India Digital TRI also performed well, with 16.8% over 3 years and 17.6% over 5 years. The BSE 500 TRI and BSE Teck TRI gave lower returns, around 13% to 17%.

This shows that digital and internet-related investments have been performing better than the broader market, which makes investment in these newly launched NFO a better alternative than regular Equity Funds.

Top 10 Holdings of BSE Internet Economy Index

Here are the top 10 holdings of Edelweiss BSE Internet Economy Index Fund NFO:

Why Invest in Edelweiss BSE Internet Economy Index Fund NFO?

“India's digital economy, which will surpass USD 1 trillion growth by 2030, is among the strong reasons to invest in this NFO. “

Here are some other compelling reasons for you to consider investing in Edelweiss BSE Internet Economy Index Fund:

Smartphone growth Potential

With one of the lowest smartphone penetration rates, India has a lot of potential to capture its market. Our country is the 2nd largest smartphone market in the world, with 70 crore smartphone users after China.

Check the data yourself in the table given below:

Growing Connectivity

After becoming the world's second-largest internet user base, India offers the cheapest internet access to other countries, which has contributed greatly to the increase in users and the powerful growth of the digital economy.

See the graph below to check the difference in prices compared to other countries:

Data Powers India's Digital Journey

In terms of data consumption, India is well ahead of the world's largest digital economies, leaving behind China. The average hours/day spent online in India by the user is 6.5%, with a maximum of 65% real-time transactions per capita per year. The reach continues to expand.

Below is a table showing the numbers:

Infrastructure Boosting Digital Inclusion

Government support for promoting adoption and digital inclusion has spread the services across 95% of villages. India's retail digital payments record more than 75% of total transactions from UPI accounts.

See the graph below to check the no. of banks live on UPI:

These above points show that the newly launched Edelweiss BSE Internet Economy Index Fund NFO brings a lot of capability and opportunity to make higher returns from the growing tech industry in India.

To Conclude Edelweiss BSE Internet Economy Index Fund Review

To wrap up the Edelweiss BSE Internet Economy Index Fund review, this NFO stands out as an exciting investment opportunity for you to invest in India's growing digital economy.

It is your chance to switch to modern investment where market leaders power every click, like payment processing via Paytm, internet connectivity by Airtel, registry and transfer agent by CAMS (Kfintech) and more such partners.

This NFO could be your ticket to wealth creation with long-term growth prospects. By investing in this index fund, you are not just investing in technology but investing in India's future. Start small with SIP and be a part of this digital revolution.