Zerodha MF files draft documents with SEBI to launch two schemes
Both the proposed schemes by Zerodha are index funds tracking Nifty LargeMidcap 250 index, among which one is an ELSS index fund and another is non-ELSS index fund
- Sep 4, 2023,
- Updated Sep 4, 2023 8:59 PM IST
Zerodha Fund House, one of India’s newest fund houses, has on Monday filed draft documents with Securities and Exchange Board of India (SEBI) to launch its first two schemes.
Last month, Nithin Kamath-led Zerodha got final approval from SEBI to launch mutual fund schemes.
Zerodha FH is a joint venture between the leading brokerage firm Zerodha and fintech platform smallcase.
Zerodha's first fund launch looks to be a passive fund benchmarked to Nifty LargeMidcap250, with an ELSS variant also available: Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250).
The NIFTY LargeMidcap 250 reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on NSE, represented through the NIFTY 100 and the NIFTY Midcap 150 index respectively. The aggregate weight of large cap stocks and mid cap stocks is 50% each and are reset on a quarterly basis.
As on July 31, 2023, the index has highest weightage of 5.97% for HDFC Bank, followed by 4.18% for Reliance Industries, 3.39% for ICICI Bank, 2.35% and 1.99% for Infosys and ITC, respectively.
The ELSS scheme is a tax saver scheme that will give the Section 80C tax deduction benefits, up to an investment of Rs 1.5 lakh.
Last month, Vishal Jain was announced as CEO of Zerodha FH.
"We will offer an array of exchange-traded funds (ETFs) and index funds that would help investors take varied exposures and build portfolios based on their financial needs and risk tolerance. Zerodha Fund House (FH) products will be exclusively distributed online and available as direct plans to engage directly with individual investors and consumers, taking advantage of the pronounced shift from physical to digital interactions," Vishal Jain told Business Standard recently.
Zerodha opting to launch passive funds will enable it to launch products at lower price points, unlike active funds that need more investments for research and fund management.
Zerodha Fund House, one of India’s newest fund houses, has on Monday filed draft documents with Securities and Exchange Board of India (SEBI) to launch its first two schemes.
Last month, Nithin Kamath-led Zerodha got final approval from SEBI to launch mutual fund schemes.
Zerodha FH is a joint venture between the leading brokerage firm Zerodha and fintech platform smallcase.
Zerodha's first fund launch looks to be a passive fund benchmarked to Nifty LargeMidcap250, with an ELSS variant also available: Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250).
The NIFTY LargeMidcap 250 reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on NSE, represented through the NIFTY 100 and the NIFTY Midcap 150 index respectively. The aggregate weight of large cap stocks and mid cap stocks is 50% each and are reset on a quarterly basis.
As on July 31, 2023, the index has highest weightage of 5.97% for HDFC Bank, followed by 4.18% for Reliance Industries, 3.39% for ICICI Bank, 2.35% and 1.99% for Infosys and ITC, respectively.
The ELSS scheme is a tax saver scheme that will give the Section 80C tax deduction benefits, up to an investment of Rs 1.5 lakh.
Last month, Vishal Jain was announced as CEO of Zerodha FH.
"We will offer an array of exchange-traded funds (ETFs) and index funds that would help investors take varied exposures and build portfolios based on their financial needs and risk tolerance. Zerodha Fund House (FH) products will be exclusively distributed online and available as direct plans to engage directly with individual investors and consumers, taking advantage of the pronounced shift from physical to digital interactions," Vishal Jain told Business Standard recently.
Zerodha opting to launch passive funds will enable it to launch products at lower price points, unlike active funds that need more investments for research and fund management.