Zerodha Fund House Launches Its Maiden Funds: NFO To Close Next Week

Zerodha Fund House announced the launch of its maiden funds - Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund, open-ended, passive, index equity mutual fund schemes. The NFO opened on 20th October 2023 and will be closed on 3rd November 2023.

An open-ended fund named the Index Fund benchmarked against the Nifty Large-Midcap 250 Index. Furthermore, the ELSS is an open-ended passive equity-linked savings plan benchmarked against the Nifty Large Midcap 250 Index with tax savings and has a three-year statutory lock-in period.

The Nifty LargeMidcap 250 Index TRI (Total Returns Index) will serve as the benchmark for the Zerodha Nifty LargeMidcap 250 Index Fund and the Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund. The plans will use a passive investing approach and make stock investments in accordance with the Nifty LargeMidcap 250 Index's weighting. In accordance with the Income-tax Act of 1961 Section 80(C), the ELSS programme offers tax benefits.

Vishal Jain, CEO, Zerodha Fund House said, "We are very excited to announce the launch of our first NFO. We believe there is a massive opportunity to help more Indians access the capital markets through simple products and exposures, and that's what we're committed to do. This NFO is an effort to provide a simple equity product with a good mix of stability and growth, which can be used by investors as a singular investment solution to invest in the top 250 companies who stand to benefit from the long-term growth of the Indian economy."

Based on a six-month average as of September 29, 2023, the Nifty LargeMidcap 250 Index encompasses over 84% of the whole market capitalization, 87% of the free-float market capitalization, and roughly 69% of the total liquidity of all traded equity equities on the NSE.

Information Technology (9.06%), Capital Goods (7.89%), and Financial Services (27.74%) are the three largest sectors in the Nifty LargeMidcap 250 Index. Compared to the 14.5% CAGR of the Nifty 100 Index and the 17.3% CAGR of the Nifty Midcap 150 Index, the Nifty LargeMidcap 250 Index has produced a 15.8% compound annual growth rate (CAGR) from its establishment on April 1, 2005, to September 29, 2023. Daily rolling return study shows that there have been no negative returns on the Nifty LargeMidcap 250 index throughout the 7 and 10-year investment horizons.

Investors can apply for the NFO on all leading MF platforms including Zerodha Coin, Groww etc.

Zerodha Fund House is a joint venture between India's largest stock broking firm Zerodha Broking Limited and a leading portfolio investing platform, smallcase Technologies Pvt Ltd.