NFO Alert: Zerodha Mutual Fund launches Zerodha BSE SENSEX Index Fund

Zerodha Fund House today announced the launch of its new scheme — Zerodha BSE SENSEX Index Fund, an open-ended scheme replicating/tracking the BSE Sensex Index.

The New Fund Offer (NFO) is open for subscription and will close on November 3. The Index Fund’s units allotment will happen on November 6 and it will reopen for ongoing subscription on November 10.

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The Zerodha BSE SENSEX Index Fund will invest in equity and equity-related securities replicating the composition of the BSE SENSEX Index, subject to tracking errors. The BSE SENSEX Index includes 30 of the largest and most financially sound companies listed on the Bombay Stock Exchange (BSE)

The investment objective of the fund is passive investment in equity and equity-related securities replicating the composition of the BSE Sensex Index, subject to tracking errors.

The fund is benchmarked against the BSE Sensex Index TRI and will be managed by Kedarnath Mirajkar.

The minimum application amount is Rs 100 and in multiples of any amount thereof. Investors can invest under the Scheme during the ongoing offer period with a minimum investment of ₹ 100 and in multiples of ‘any amount’ thereafter.

“As the first stock market index in India - the BSE sensex reflects the performance of the country’s leading companies across key sectors. This journey of this index spans several pivotal moments - dawn of the internet, the mobile phone revolution, the 2008 global financial crisis and the rise of India's digital economy. With this fund, we’re offering investors a simple way to invest in India’s leading companies and build a diversified portfolio,” said Vishal Jain, CEO, Zerodha Fund House.

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The Scheme is a passively managed index fund, which endeavors to invest in stocks in proportion to the weightage of the stocks in the BSE SENSEX Index TRI. The investment strategy would revolve around reducing the tracking error to the least possible extent through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections/redemptions in the Scheme. Such rebalancing shall be done in accordance with timelines prescribed by SEBI from time to time.