Zerodha Fund House recently introduced two new ETFs:
Zerodha Nifty 100 ETF (ZN100) for large caps and Zerodha Nifty Midcap 150 ETF (ZM150) for midcaps.
Zerodha Nifty 100 ETF focuses on large-cap stocks, while Zerodha Nifty Midcap 150 ETF targets mid-cap stocks.
Both are exchange-traded funds (ETFs). This implies that you can purchase or sell the units of both these schemes on the stock exchange.
If you have 7.55 lakh units or more of these schemes, you can sell them directly to the fund house.
If you have fewer units than this, you’ll need to sell them through the stock exchange.
Zerodha Fund House is expanding the product portfolio
Zerodha Fund House is a newcomer in the mutual fund industry, actively broadening its range of offerings.
Initially, it introduced a tax-saver fund, followed by a large-cap and mid-cap fund.
Recently, it also launched a liquid ETF and a gold ETF.
Currently, there are approximately 91 passively managed schemes in the large-cap segment, whereas the number is smaller for mid-cap funds, standing at only 16.
Passive funds have low expense ratio
Both schemes are straightforward, especially ZN100, which will invest in stocks from the top 100 companies based on market capitalization. ZM150 will invest in stocks from the following 150 companies, which are known as midcaps.
On average, large-cap based passive funds have an expense ratio of 0.40%, while some ETFs have ratios as low as 0.03 to 0.04%.
Investments can be made in both schemes till June 7
The goal of Zerodha Fund House in introducing products like ZN100 and ZM150 is to progress to the next growth phase.
CEO Vishal Jain from Bangalore mentioned, “Solution-oriented funds provide solutions for investors who have avoided mutual funds due to complexity.”
Zerodha Fund House doesn’t anticipate significant investments in ZN100 and ZM150, but they are integral to the company’s broader strategy.
The New Fund Offer (NFO) for both schemes ends on June 7.
