Nithin Kamath led Zerodha Fund House launches its maiden funds. Here are the crucial details

Zerodha Fund House today announced the launch of its maiden funds—Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund—which are open-ended, passive, index equity mutual fund schemes. The NFO will be open from October 20 to November 3. Investors can apply for the NFO on all leading MF platforms including Zerodha Coin, Groww etc.

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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. Zerodha Fund House (ZFH) is India’s only passive-only AMC which will build simple, transparent, affordable mutual funds. ZFH will leverage technology at every touchpoint to provide building blocks for every investor's portfolio, according to a press release.

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 years and tax benefit replicating Nifty LargeMidcap 250 Index. Zerodha Nifty LargeMidcap 250 Index Fund & Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund will be benchmarked against the 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. The ELSS scheme provides tax benefit under Section 80 (C) of the Income-tax Act, 1961.

Vishal Jain, CEO of Zerodha Fund House, said, “This NFO is an effort to provide a simple equity product with a good mix of stability and growth, which investors can use 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.”

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.

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Summary:      

● Category: Index Fund - Other Schemes - Index Funds | ELSS - Other Schemes - Index ELSS

● Benchmark: Nifty LargeMidcap 250 TRI                            

● Fund Manager: Kedarnath Mirajkar                    

● NFO open date: October 20, 2023                                  

● NFO close date: November 3, 2023                                

● Minimum SIP Investment: Rs 100 and in multiples of Re 1 thereof for Zerodha Nifty LargeMidcap 250 Index Fund and Rs. 500 for Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund    

● Minimum Application Amount: Rs 100 for Index fund and Rs 500 for ELSS and in multiples of Re 1 thereof        

● Exit Load: NA

About the 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 10 year investment horizons, based on daily rolling return analysis (Source: NSE Indices.  Data as on September 29, 2023).

The product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made.