Zerodha Mutual Fund announced the launch of the Zerodha Nifty LargeMidcap 250 Index Fund. The scheme opened for public subscription on October 20, 2023, and will close on November 03, 2023.
What kind of mutual fund scheme is this?
This is an open-ended scheme replicating/ tracking the Nifty LargeMidcap 250 Index.
This product is suitable for investors who are seeking
- Long-term capital growth
- Investment in equity and equity-related securities covered by the Nifty LargeMidcap 250 Index
What is the main objective of investing in this fund?
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 the Nifty LargeMidcap 250 Index (subject to tracking error).
However, there can be no assurance or guarantee that the scheme’s investment objective will be achieved.
How may one invest in this scheme?
The scheme shall invest in the following securities as per the limits specified in the asset allocation
table of the scheme, subject to SEBI (Mutual Fund) Regulations. The scheme would invest in stocks constituting the Nifty LargeMidcap 250 Index in a similar proportion (weightage) as in the Index and endeavour to track the benchmark index.
Under normal circumstances, the asset allocation (% of net assets) of the scheme’s portfolio will be as follows:
|
Types of Instruments |
Minimum Allocation (% of Total Assets) |
Maximum Allocation (% of Total Assets) |
Risk Profile |
|
Equities and equity-related securities covered by the Nifty LargeMidcap 250 Index |
95 |
100 |
Very High |
|
Equities and equity-related securities covered by the Nifty LargeMidcap 250 Index |
0 |
5 |
Low to Moderate |
Are there similar mutual funds in the market?
To date, only Edelweiss Mutual Fund has launched one such index fund scheme, namely the Edelweiss Nifty Large Mid Cap 250 Index Fund.
|
Name of the fund house |
Name of the fund |
One-year returns (in %) |
|
Edelweiss Mutual Fund |
Edelweiss Nifty Large Mid Cap 250 Index Fund |
19.74 |
How will the scheme benchmark its performance?
The performance of the scheme shall be benchmarked to the Nifty LargeMidcap 250 Index TRI.
The performance of the scheme may not be commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The scheme intends to maintain a low tracking error by effectively replicating the portfolio in line with the index.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be“Nil”.
Who will manage this scheme?
Kedarnath Mirajkar is the designated fund manager of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
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Updated: 20 Oct 2023, 04:18 PM IST