Zerodha Fund House Launches Its Maiden Mutual Fund Schemes
Zerodha Fund House on Wednesday (October 25)announced the launch of itsmaiden 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 remain open till 3rd November 2023.
Zerodha Fund House is a joint venture between Zerodha BrokingLimited and smallcase Technologies Pvt Ltd.
The Index Fund is an open-ended scheme replicating Nifty LargeMidcap 250 Index. And the ELSS is an open-ended passive equity-linked savings scheme with a statutory lock-in period of 3 yearsand tax benefit replicating Nifty LargeMidcap 250 Index.
Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund will be benchmarked against Nifty LargeMidcap 250 Index TRI (Total Returns Index). The schemes will adopt a passive investment strategy and will endeavour to invest in stocks in proportion to the weightage of the stocks in the Nifty LargeMidcap 250 Index.
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The ELSS scheme provides tax benefit under Section 80 (C) of the Income-tax Act, 1961.
“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’recommitted 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,” said Vishal Jain, CEO, Zerodha Fund House.
What is Nifty LargeMidcap 250 Index?
The Nifty LargeMidcap 250 Index aims to reflect the performance of the large and midcap companies listed at NSE with 50% weight allocated to each segment. The 250 stocks of Nifty LargeMidcap 250 Index are the combination of the universe of stocks forming part of Nifty 100 Index and Nifty Midcap 150 Index.
The Nifty LargeMidcap 250 Index covers approximately 84% of the full market capitalization, around 87% of the free-float market capitalization and approximately 69% of the total liquidity of all traded equity stocks on NSE based on 6 month average as of September 29, 2023.
The largest sectors in Nifty LargeMidcap 250 Index are Financial Services (27.74%), Information Technology (9.06%) and Capital Goods (7.89%)
Being a balanced fit between the Nifty 100 and the Nifty Midcap 150 index, the Nifty LargeMidcap 250 index witnessed returns between the Nifty 100 and Nifty Midcap 150 index
Since inception on April 01, 2005, till September 29, 2023, the Nifty LargeMidcap 250 Index has delivered 15.8% CAGR as compared to 14.5% CAGR by Nifty 100 Index and 17.3% CAGR by Nifty Midcap 150 Index
The Nifty LargeMidcap 250 index has not witnessed negative returns in the 7 year and 10year investment horizons, based on daily rolling return analysis (Source: NSE Indices. (Data as on September 29, 2023).
Application fee
The minimum application amount for Zerodha NIFTY LargeMidcap 250 Index Fund is Rs. 100 and Rs. 500 for Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund.
Disclaimer: The above content is for informational purposes only, based on a press release by Zerodha Fund House.Mutual Fundinvestments are subject tomarketrisks. Please consult your financial advisor before investing.
