NFO Alert: Everything you need to know about Zerodha Mutual Fund's introduction of the Zerodha Nifty LargeMidcap 250 Index Fund

 NFO Alert: Everything you need to know about Zerodha Mutual Fund's introduction of the Zerodha Nifty LargeMidcap 250 Index Fund

The Zerodha Nifty LargeMidcap 250 Index Fund was introduced by Zerodha Mutual Fund. The public subscription period for the plan began on October 20, 2023, and it will end on November 3, 2023.

This is what type of a mutual fund scheme?

The Nifty LargeMidcap 250 Index is replicated or tracked by this open-ended strategy.

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sustained capital growth

Investments in securities that are covered by the Nifty LargeMidcap 250 Index, including equity-related securities

What is the primary goal of funding this fund?

In order to attain returns equal to the Total Return Index of the Nasdaq LargeMidcap 250 Index (subject to tracking error), the investment aim of the plan is to invest in the stocks that make up the Nifty LargeMidcap 250 Index in the same proportion as in the index's total return index.

But there can be no assurance or guarantee that the investing goal of the program will be realized.

How can a person invest in this plan?

According to the restrictions laid forth in the asset allocation, the plan must invest in the following assets.

the scheme's table, as per SEBI (MF) regulations. The program would attempt to follow the benchmark index by investing in the same number of companies (weightage) that make up the Nifty LargeMidcap 250 Index.

The portfolio's asset allocation (as a percentage of net assets) will typically be as follows:

Exist any other mutual funds that are comparable?

One such index fund plan, the Edelweiss Nifty Large Mid Cap 250 Index Fund, has only been introduced to date by the Edelweiss Mutual Fund.

How will the program evaluate its effectiveness?

The Nifty LargeMidcap 250 Index TRI will be used as the benchmark for the scheme's performance.

On any given day or during any given time, the performance of the scheme may not match that of the corresponding benchmark of the Schemes. The tracking mistake is a popular name for these differences. Through efficient portfolio replication in accordance with the index, the strategy aims to maintain a minimal tracking error.

Does this scheme have any entrance or exit loads?

Investors do not have to pay anything to park their gains in this plan since there is no "Entry Load" involved. Additionally, the "Exit Load" would be "Nil".

Who will oversee this plan?

The authorized fund manager for this program is Kedarnath Mirajkar.

Is there any inherent risk in the fund?

According to the program Information Document, the program entails "Very High Risk" and is most suitable for investors who accept that their money will only be exposed to extremely high risk. If investors have any questions about whether the product is right for them, they should speak with their financial advisers.