Zerodha Fund House on May 27, 2024, announced the launch of Zerodha Nifty 100 ETF and Zerodha Nifty Midcap 150 ET. The NFOs of these passively managed Exchange Traded Funds (ETFs) will run from May 27 2024 till June 7, 2024. The minimum investment in both schemes during the NFO period is Rs 1,000.
The Zerodha Nifty 100 ETF replicates the performance of the Nifty 100 Total Returns Index (TRI), while the Zerodha Nifty Midcap 150 ETF replicates the performance of the Nifty 150 Midcap TRI. The Zerodha Nifty 100 ETF gives allows investors to invest in India’s top 100 companies in terms of market capitalisation, known as large-caps and allows sectoral diversification. The Zerodha Nifty Midcap 150 ETF invests in India’s 150 mid-cap companies. Thus Zerodha Nifty 100 and Zerodha Nifty Midcap 150 ETFs offer the flexibility to invest in the entire universe of both large-cap and mid-cap segments independently.
ETFs are passive investment funds that invest in various stocks, bonds etc and are traded on the stock exchange. They aim to replicate the performance of a benchmark index. Though ETFs have characteristics of a mutual fund they also exhibit characteristics of stocks as they are listed on stock exchange and their prices fluctuate during trading hours. To invest in ETFs, you need a Demat account, or you can invest through the fund-of-fund route.
Vishal Jain, CEO, Zerodha Fund House said, “As the only passive fund houses in the country, we have a responsibility to offer Indian investors...new strategic combinations that give them flexibility to gain exposure across different segments of the Indian capital market. The two new ETFs offer an opportunity to investors to get exposure in the key segments that broadly represent the Indian economy”.
The Nifty 100 ETF covers 69 per cent of the free float market capitalization of Nifty 500 universe. Since its inception, Nifty 100 TRI has provided 17.56 per cent CAGR returns, with 21.53 per cent volatility, the fund house claimed.
Further, The Nifty Midcap 150 ETF gives investors access to a diversified portfolio of emerging mid-cap companies that may have good growth opportunities, Zerodha fund house said. This ETF covers 15 per cent of the free float market capitalisation of Nifty 500 universe. Since the inception of this index, Nifty Midcap 150 TRI has delivered 18.06 per cent CAGR return with 21.13 per cent volatility.
