Publish Date:
Zerodha Mutual Fund has launched – Zerodha Nifty LargeMidcap 250 Index Fund
It is an open-ended scheme 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). There can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Under normal circumstances, Zerodha 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 Nifty LargeMidcap 250 Index Fund is a passively managed index fund, which endeavours 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 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 100/- and in multiples of Re.1/- thereof.
The scheme offers Direct Plan each plan and Growth option only.