Over two months after receiving the final approval for its mutual fund business, online brokerage Zerodha has launched its maiden passive mutual funds — Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund. Zerodha Fund House will only have direct plans.
Both the funds are open-ended, passive and index equity mutual fund schemes. However, the minimum amounts of investment are Rs 100 and Rs 500 for LargeMidcap 250 and ELSS Tax Saver funds, respectively. The new fund offers will open on October 20 and close on November 3 this year. The allotment will take place on November 8.
The schemes will endeavour to invest in stocks in proportion to the weightage of the stocks in the Nifty LargeMidcap 250 Index. The ELSS scheme, which has a lock-in period of 3 years, provides tax benefits under Section 80 (C) of the Income Tax Act, 1961.
Apart from Zerodha, Edelweiss Nifty LargeMidcap 250 Index Fund is the only other fund that is tracking the Nifty LargeMidcap250 Index.
The MF schemes fall under the category of ‘Very High Risk’. The company said the product is suitable for those who are seeking long-term capital growth and investment in equity and equity-related securities covered by Nifty LargeMidcap 250 Index.
About Fund Manager
The fund manager for the two schemes is Kedarnath Mirajkar. Kedar has an experience of 17 years in financial markets, across multiple roles at Aditya Birla Sunlife AMC Ltd (ABSLAMC), including fund management for passive products, where he managed 13 ETFs and Index Funds in equity & commodity. Kedar’s belief in his own words is – “Passive investing uses the collective intelligence of the market instead of manually picking stocks and works for most investors.”