NFO Alert: Zerodha Mutual Fund launches Nifty50 based two passive funds

Zerodha Fund House today announced the launch of two new schemes — Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund, both open-ended schemes replicating/tracking the Nifty 50 Index - TRI.

Units of the Index Fund will be allotted on October 14 and it will reopen for ongoing subscriptions on October 17. The ETF will be listed on exchanges on October 20.

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The Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund will track the Nifty 50 Index TRI, subject to tracking errors. The Nifty 50 Index includes 50 of the largest and most liquid companies in India, according to the fund house.

“The Nifty 50 is more than just an index; it acts as a barometer for the Indian economy. As the most tracked and traded benchmark in our market, it represents the pulse of the nation’s growth. With this fund, we are offering investors a straightforward opportunity to align their portfolio with something that can be considered the heartbeat of India’s economic story. It’s a simple, low-cost way to own a piece of the 50 largest companies driving India forward,” said Vishal Jain, CEO, Zerodha Fund House.

The funds are designed for investors who understand that returns can vary day-to-day. The schemes come with higher volatility due to equity market fluctuations and are suitable for investors with a long-term horizon, who can withstand short-term swings and remain committed during market ups and downs.

The investment objective of the Zerodha Nifty 50 ETF is passive investment in equity and equity-related securities replicating the composition of the Nifty 50 Index, subject to tracking errors. The investment objective of the Zerodha Nifty 50 Index Fund is the same — passive investment in equity and equity-related securities replicating the Nifty 50 Index, subject to tracking errors.

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The minimum investment amount is Rs 1,000 and in multiples of Rs 1,000 thereafter for the Zerodha Nifty 50 ETF, whereas for the Zerodha Nifty 50 Index Fund, the minimum amount is Rs 100 and in multiples of ‘any amount’ thereafter.

The principal invested in both passive funds is categorized as “very high risk,” according to the schemes’ riskometers.

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