Zerodha is launching a new passive investment fund, the Zerodha Nifty LargeMidcap250 Plus 8-13 yr G-Sec 70:30 Index Fund, which will be open for subscriptions from April 1 to April 15, 2024. This is an open-ended scheme designed to replicate the performance of its benchmark index.
The underlying Nifty LargeMidcap250 Plus 8-13 yr G-Sec 70:30 Index has a dual composition:
- 70% allocation to the Nifty LargeMidcap250 Index, providing exposure to a diversified blend of large and mid-cap Indian equities.
- 30% allocation to the Nifty 8-13 yr G-Sec Index, which tracks government securities with a maturity of 8 to 13 years, adding a debt component for stability.
A key feature is its low entry barrier, with a minimum investment amount set at just Rs 100, making it highly accessible to a broad base of retail investors. As a passive fund, it aims to mirror the index’s returns with minimal tracking error, offering a simple, cost-effective way to gain a predefined mix of equity and government bond exposure in a single product. This launch expands Zerodha’s passive offerings, providing investors with a ready-made, balanced portfolio strategy based on a specific 70:30 asset allocation model.