#ZerodhaIndexFund #BSESensex #MutualFundNFO #InvestInIndia #PassiveInvesting #StockMarketIndia #RetailInvestors #FinancialFreedom #LowCostInvesting #WealthCreation
Chandigarh: In a move aimed at empowering retail investors with a simple and effective way to participate in India’s equity markets, Zerodha Fund House has launched the Zerodha BSE SENSEX Index Fund. This open-ended mutual fund scheme seeks to replicate and track the performance of the BSE SENSEX Index, one of India’s oldest and most prominent stock market benchmarks.
The New Fund Offer (NFO) opens on October 20 and closes on November 3, 2025. Units will be allotted on November 6, and the fund will reopen for continuous subscription and redemption from November 10 onwards. The scheme will invest in equities and equity-related instruments that mirror the composition of the BSE SENSEX, subject to minimal tracking errors.
What Makes This Fund Attractive to Investors?
The BSE SENSEX Index represents 30 of India’s largest, most stable, and financially sound companies across diverse sectors, including banking, information technology, energy, consumer goods, and manufacturing. These companies are considered bellwethers of the Indian economy, often referred to as “blue chip” stocks.
By investing in this index fund, retail investors can gain instant diversification and broad market exposure, eliminating the need to pick individual stocks. This is particularly beneficial for those new to investing or seeking a low-maintenance, long-term wealth-building option.
A Milestone for Zerodha in Mutual Fund Space
Speaking about the launch, Vishal Jain, CEO of Zerodha Fund House, said,
“As the first stock market index in India, the BSE SENSEX reflects the performance of leading companies across key sectors. This index has witnessed several pivotal moments — from the dawn of the internet and the mobile phone revolution to the 2008 global financial crisis and the rise of India’s digital economy. With this fund, we offer investors a straightforward way to invest in India’s leading companies and build a diversified portfolio.”
The launch marks a significant milestone for Zerodha Fund House, which is a joint venture between Zerodha Broking and Smallcase Technologies. With a reputation for innovation, transparency, and low-cost investing, Zerodha’s entry into index funds aligns with its mission of democratizing access to capital markets.
Why Index Funds Are Gaining Popularity
Index funds have grown rapidly in popularity due to their simplicity, low cost, and consistent performance over the long term. Unlike actively managed funds, they do not rely on a fund manager’s discretion to pick stocks. Instead, they mirror a benchmark index, which reduces management costs and eliminates human bias.
Key benefits include:
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Lower expense ratio
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Automatic diversification
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Market-linked returns
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Ideal for long-term wealth building
For investors seeking exposure to India’s growth story with minimal risk compared to individual stocks, this fund provides a cost-effective solution.
How to Invest
Investors can subscribe to the NFO through:
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Major mutual fund platforms
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Zerodha’s distribution platforms
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Registered mutual fund distributors and investment portals
The fund is suited for long-term investors with moderate to high risk appetite, particularly those aiming to build wealth systematically through SIPs (Systematic Investment Plans).
Investor-Friendly Approach
Zerodha Fund House emphasizes simplicity, transparency, and low-cost investing. With the SENSEX Index Fund, it aims to bring the power of passive investing to millions of retail investors who wish to participate in India’s economic rise without the complexity of market timing or stock selection.
Index funds are especially suited for:
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First-time mutual fund investors
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Salaried professionals looking for systematic long-term investment options
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Individuals planning for retirement or long-term financial goals
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Investors who prefer low-maintenance investments with steady returns
Conclusion
The launch of the Zerodha BSE SENSEX Index Fund comes at a time when India’s stock markets are seeing record participation from domestic investors. As the country continues its growth trajectory, this fund offers investors a convenient and low-cost way to invest in the top-performing companies that drive India’s economy. With its focus on transparency and accessibility, Zerodha is positioning itself as a key player in the passive investment space.
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#ZerodhaIndexFund #BSESensex #MutualFundNFO #InvestInIndia #PassiveInvesting #StockMarketIndia #RetailInvestors #FinancialFreedom #LowCostInvesting #WealthCreation
