Zerodha Mutual Fund files draft for ELSS, large & mid cap passive funds

Zerodha Mutual Fund has filed drafts for two passive schemes: Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund and Zerodha Nifty LargeMidcap 250 Index Fund.

Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund
Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund will be an open-ended passive equity linked savings scheme with a statutory lock-in period of three years and tax benefit replicating/ tracking Nifty LargeMidcap 250 Index.

The investment objective of the scheme is to invest in stocks comprising the Nifty LargeMidcap 250 Index in the same proportion as in the index to achieve returns equivalent to the total return index of Nifty LargeMidcap 250 Index (subject to tracking error), while offering deduction on such investment made in the scheme under Section 80C of the Income-tax Act, 1961.


The minimum application amount for the scheme will be Rs 500 and in multiples of Rs 500 thereafter.

The scheme 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 investment strategy of the scheme 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.

Zerodha Nifty LargeMidcap 250 Index Fund
Zerodha Nifty LargeMidcap 250 Index Fund will be an open-ended scheme replicating/ tracking Nifty LargeMidcap 250 Index.

The investment objective of the scheme is to invest in stocks comprising the Nifty LargeMidcap 250 Index in the same proportion as in the index to achieve returns equivalent to the total return index of Nifty LargeMidcap 250 Index (subject to tracking error).

The minimum application amount for the scheme will be Rs 100 and in multiples of Rs 1 thereafter.

The scheme will be a passively managed index fund, which endeavours to invest in stocks in proportion to the weightage of the stocks in the Nifty LargeMidcap 250 Index. The investment strategy of the scheme 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.

The performance of both the schemes will be benchmarked against Nifty LargeMidcap 250 Index TRI. The schemes will be managed by Kedarnath Mirajkar.

The schemes will invest 95-100% in equities and equity-related securities covered by Nifty LargeMidcap 250 Index, and 0-5% in debt and money market instruments.

The schemes will offer only direct plan with growth option.

The schemes will be suitable for investors who are seeking long-term capital growth and want investment in equity and equity related securities covered by Nifty LargeMidcap 250 Index.