Zerodha Fund House launches two schemes, India’s top 50 firms under coverage

Zerodha Fund House has introduced two new open-ended investment schemes—the Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund—each designed to track the Nifty 50 Index Total Return Index (TRI), which represents 50 of India’s largest and most liquid companies.

The Index Fund will allot its initial units on October 14 and will reopen for ongoing subscriptions from October 17, while the ETF is scheduled for listing on stock exchanges on October 20. The schemes seek to replicate the performance of the Nifty 50 Index, though results may be affected by tracking errors. Zerodha AMC, which manages these offerings, operates as a joint venture between Zerodha Broking Ltd and Smallcase Technologies.

The schemes are positioned for investors with a long-term view who are equipped to tolerate the day-to-day fluctuations of the market. The fund house has recommended that potential investors consult their financial advisers to assess whether these products suit their investment objectives and risk appetite.

Product labelling assigned at the New Fund Offer (NFO) phase is based on internal assessment and may be updated once the fund’s investments are fully deployed.

According to Vishal Jain, CEO of Zerodha Fund House, “The Nifty 50 is more than just an index; it acts as a barometer for the Indian economy. With this fund, we are offering investors an opportunity to align their portfolio with the 50 largest companies driving India forward. It is a simple, low-cost way to invest in the country’s growth story.”

Both the ETF and the Index Fund are designed to offer a straightforward, low-cost approach to gaining exposure to the Indian equity market through the Nifty 50. These schemes target investors who wish to participate in the growth of India’s leading companies via a diversified basket reflecting the broader market. Product labelling and categorisation may evolve as the fund builds its portfolio and begins regular operations.