NFO Alert: Zerodha Mutual Fund launches Nifty LargeMidcap250 Plus 8–13 Yr G-Sec 70:30 Index Fund

Zerodha Mutual Fund on Wednesday announced the launch of the Zerodha Nifty LargeMidcap250 Plus 8–13 Yr G-Sec 70:30 Index Fund, a unique hybrid index fund designed for investors seeking exposure to both the top 250 Indian equities by market capitalization and government securities through a single, passively managed vehicle.

The fund’s NFO (New Fund Offer) is open for subscription and will close on April 15. The scheme will reopen for continuous sale and repurchase within five business days from the allotment of units under the NFO.

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The fund tracks an index allocating 70% to the Nifty LargeMidcap 250 Index, representing India’s top 250 large- and mid-cap companies, and 30% to the Nifty 8-13 Yr G-Sec Index, backed by government securities. The equity portion aims to provide growth potential, while the G-Sec allocation may help cushion equity volatility. The fund will be managed by Kedarnath Mirajkar.

What sets this fund apart is its automatic monthly rebalancing of the 70:30 allocation, ensuring disciplined portfolio balance is maintained within the index itself, with no action required from investors, according to the fund house.

For every Rs 100 invested, approximately Rs 35 goes to large-cap companies, Rs 35 to mid-cap companies, and Rs 30 to government securities, offering broad equity exposure across India’s top 250 companies alongside stable G-Sec exposure.

With a minimum investment of Rs 100, the fund may suit investors seeking a diversified portfolio across equity and debt with a long-term horizon.

"We’ve always believed that good portfolio construction shouldn’t require constant tinkering. The Zerodha Nifty LargeMidcap250 Plus 8–13 Yr G-Sec 70:30 Index Fund gives you broad equity exposure across India’s top 250 companies along with sovereign debt, all within a single, passively managed product,” said Vishal Jain, CEO, Zerodha Fund House.

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The fund will invest 95–100% in securities covered by the Nifty LargeMidcap250 Plus 8–13 Yr G-Sec 70:30 Index and 0–5% in debt and money market instruments, cash, and cash equivalents.

According to the fund’s riskometer, the principal invested in the scheme is classified as “very high” risk.

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