Zerodha MF expands offerings with launch of large-cap, mid-cap ETFs
Zerodha Mutual Fund has introduced two new exchange-traded fund (ETF) schemes in India, called the Zerodha Nifty 100 ETF (ZN100) and Zerodha Nifty Midcap 150 ETF (ZM150). These new offerings expand the fund house's portfolio, which currently manages assets worth ₹1,236 crore. The New Fund Offer (NFO) for both the schemes will close on June 7.
Understanding the new ETF schemes
The ZN100 is a large-cap scheme that will invest in the top 100 companies by market capitalization. On the other hand, the ZM150 is a mid-cap fund that will invest in the next 150 largest companies by market capitalization. Both these schemes are ETFs, meaning they can be bought and sold only on the stock exchange. However, if an investor holds over 7.55 lakh units, they could buy or sell directly with the fund house.
Zerodha Mutual Fund's growth and future plans
Zerodha Mutual Fund, established in November 2023, initially launched a tax-saver index fund and a large and mid-cap fund. Earlier this year, it introduced a liquid ETF and a gold ETF. The fund house plans to launch 'solution funds' that will offer combinations of existing ETFs and index funds. For instance, an ETF that invests in a mix of equity and gold is awaiting approval from the Securities and Exchange Board of India (SEBI).
CEO shares insights on future solution-oriented funds
Vishal Jain, the CEO of Zerodha Mutual Fund, shared that the upcoming solution-oriented funds aim to simplify investing for those who find mutual funds too complex. These funds will offer asset allocation products, like a large-mid-small cap ETF that could potentially be a blend of ZN100 and ZM150, and possibly a small-cap ETF. Zerodha MF also plans to incorporate its existing Gold ETF into these combinations in the future.
