homepersonal finance NewsZerodha MF files draft documents with SEBI to launch two index funds: Check schemes' details

Zerodha MF files draft documents with SEBI to launch two index funds: Check schemes' details

Both schemes will be pegged against the Nifty Large Midcap 250 Index Fund, a key benchmark in the Indian financial market.

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By Anshul  Sept 5, 2023 11:46:08 AM IST (Published)

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Zerodha MF files draft documents with SEBI to launch two index funds: Check schemes' details
Zerodha Asset Management, a recently licensed fund house by the Securities and Exchange Board of India (SEBI), is all set to introduce two new mutual fund schemes. The fund house has filed a draft offer documents with SEBI for the launch of two distinct schemes - Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250).

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Both schemes will be pegged against the Nifty Large Midcap 250 Index Fund, a key benchmark in the Indian financial market. These developments come nearly a month after the firm received its final license.
Notably, brokerage firm  Zerodha and fintech platform Smallcase joined to launch the Zerodha fund house.
Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund
Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund will work as a tax-saving scheme, offering investors the Section 80C tax deduction benefits, applicable for investments up to Rs 1.5 lakh.
According to the information disclosed in SEBI's filing, the Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund will operate as an open-ended passive equity linked saving scheme. It will enforce a statutory lock-in period of three years and mirror the Nifty Large Midcap 250 index, thus allowing investors to reap tax benefits while mirroring market performance.
The face value of each unit will be Rs 10 per unit. There will be no entry and exit load. As of now, the scheme will offer only direct plan.
Zerodha Nifty Large Midcap 250 Index Fund
This fund will operate as an open-ended scheme closely tracking the Nifty Large Midcap 250 index. Its core investment objective is to maintain a portfolio mirroring the Nifty Large Midcap 250 Index, ensuring returns equivalent to the Total Return Index of this benchmark.
On an ongoing basis, the subscription and redemption shall be at NAV based prices on all business days. The fund shall dispatch proceeds of redemption within 3 working days of receiving the valid redemption request.
The face value of each unit will be Rs 10 per unit. There will be no entry and exit load. As of now, the scheme will offer only direct plan, with growth option.

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