NFO Alert : Zerodha Fund House launches Nifty MidSmallcap400 50:50 Index Fund

Zerodha Fund House today announced the launch of the Zerodha Nifty MidSmallcap400 50:50 Index Fund, an open-ended equity index fund tracking the Nifty MidSmallcap400 50:50 Index TRI. The fund offers investors a simple way to allocate equally to both the midcap and smallcap segments of the Indian market.

The new fund offer or NFO of the scheme is open for subscription and will close on April 6.

Also Read | Starting SIPs in new financial year? Experts suggest largecap, flexicap mix; prefer gold over silver


The fund house believes that this fund may act as a satellite to the core portfolio, a focused allocation beyond the largecap segment. Midcap and smallcap segments may contribute to higher growth potential, albeit with relatively higher volatility, together offering a balanced risk-return profile.

The fund tracks the Nifty MidSmallcap400 50:50 Index TRI which holds 400 companies,150 midcap and 250 smallcap companies as per free float market capitalization outside the 100 largecap companies. Collectively, this gives investors broad exposure to both segments. The index aims to maintain a 50:50 weight between the two segments.

With a minimum investment of Rs 100, it might be suitable for investors with a relatively higher risk appetite and a long-term investment horizon.

Vishal Jain, CEO, Zerodha Fund House said “We've always believed that investing should be simple and accessible. A lot of India's growth story is still unfolding beyond the top 100 companies, and Zerodha Nifty MidSmallcap400 50:50 Index Fund is our way of making that accessible to every investor."

The fund is suitable for investors who are seeking long term capital growth and want investment in equity and equity related securities covered by Nifty MidSmallcap400 50:50 Index Fund.

Also Read | Can Rs 20 lakh grow into Rs 3 crore in 15 years? Here’s what expert recommends

The principal invested in the fund will be at very high risk according to the riskometer of the scheme.