Publish Date:
Zerodha Mutual Fund introduces – Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund
It is an open-ended passive equity linked savings scheme with a statutory lock-in period of 3 years and tax benefit replicating/ tracking Nifty LargeMidcap 250 Index.
Accordingly, 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.
There can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Under normal circumstances, Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund will hold an allocation of 95% to 100% in Equities and equity related securities covered by Nifty LargeMidcap 250 Index and 0% to 5% in Debt and Money Market Instruments.
As per the Scheme Information Document, Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund 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.
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The investment strategy 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. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund’s performance will be benchmarked against Nifty LargeMidcap 250 Index TRI
The scheme will be managed by Mr Kedarnath Mirajkar.
The NFO opens for subscription on October 20, 2023 and closes on November 03, 2023. The schemes will reopen for continuous sale and repurchase on within 5 Business Days from the date of allotment.
The minimum subscription amount is Rs 500/- and in multiples of Re.1/- thereof.
The scheme offers Direct Plan each plan and Growth option only.