#Zerodha #Nifty50 #ETFs #IndexFunds #PassiveInvesting #IndianStockMarket #FinanceNews #LowCostInvesting #VishalJain
Mumbai — Zerodha Fund House has officially announced the launch of two new passive investment schemes aimed at making access to India’s top companies simpler and more affordable for investors. The new offerings are the Zerodha Nifty 50 ETF (Exchange-Traded Fund) and the Zerodha Nifty 50 Index Fund. Both open-ended schemes are meticulously designed to track the Nifty 50 Index Total Return Index (TRI), which is composed of 50 of the nation’s largest, most established, and most liquid companies.
This dual launch caters to different investor preferences regarding trading and liquidity. While the Index Fund provides unit-based investment through the fund house, the ETF offers the flexibility of being traded like a stock on the exchange.
Investment Timeline and Accessibility
Investors can mark their calendars for the following key dates related to the new schemes:
- Index Fund Unit Allotment: The Zerodha Nifty 50 Index Fund will allot its initial units on October 14, 2025.
- Index Fund Reopening: Following the initial allotment, the Index Fund will reopen for ongoing subscription on October 17, 2025, allowing new and existing investors to subscribe through the fund house thereafter.
- ETF Listing: The Zerodha Nifty 50 ETF is scheduled to be officially listed on the major stock exchanges on October 20, 2025, at which point it can be bought and sold by investors throughout the trading day.
The introduction of these funds provides a low-cost, diversified investment vehicle, allowing retail investors to participate in the growth of the broader Indian economy without the complexity or high expense ratios typically associated with actively managed funds. Both products share the fundamental goal of replicating the performance of the Nifty 50 Index, with their performance being subject only to minimal tracking errors inherent to passive fund management.
Alignment with India’s Economic Growth
Vishal Jain, CEO of Zerodha Fund House, highlighted the strategic importance of choosing the Nifty 50 as the underlying index for the new schemes. “The Nifty 50 is more than just an index; it acts as a crucial barometer for the Indian economy, representing the companies that form the backbone of our industrial and financial progress,” Jain commented. “With the launch of these two schemes, we are offering investors an incredibly simple and powerful opportunity to align their portfolio directly with the 50 largest, most robust companies driving India forward. It is, quite simply, a low-cost, transparent, and effective way to invest in the country’s long-term growth story.”
The passive investment trend, characterized by indexing and ETFs, has been gaining significant traction in India and globally due to its reduced costs, simplicity, and historical outperformance compared to many actively managed schemes. Zerodha Fund House’s decision to launch both an ETF and a traditional Index Fund tracking the same benchmark provides flexibility, accommodating both demat account holders who prefer the real-time liquidity of ETFs and mutual fund investors who prefer investing via SIPs or lumpsum through a standard mutual fund structure.
Investor Suitability and Transparency
Zerodha Fund House has positioned both the Zerodha Nifty 50 ETF and the Zerodha Nifty 50 Index Fund as products designed for investors with a long-term investment horizon. These investors should have a moderate to high-risk appetite, as they must be able to tolerate the daily market fluctuations that are a natural characteristic of equity investments.
Recognizing the crucial need for appropriate financial planning, the fund house strongly advises potential investors to consult their financial advisers to accurately determine whether the product suits their specific investment needs, financial goals, and risk profile.
It is important for investors to note the fund house’s statement regarding transparency: the product labelling assigned during the New Fund Offer (NFO) period is based on an internal assessment of the scheme’s theoretical characteristics. This labelling may be subject to change once the funds are fully operational and actual investments are made, further aligning the label with the realized risk profile of the scheme.
Zerodha AMC, the asset management company managing these schemes, operates as a strategic joint venture between Zerodha Broking Ltd and Smallcase Technologies, combining Zerodha’s broad market reach and technology platform with Smallcase’s experience in thematic and basket-based investment solutions. This partnership aims to leverage technology to deliver innovative and cost-effective investment products to a wide audience of Indian investors. The introduction of these two Nifty 50 schemes solidifies the fund house’s commitment to growing the passive investment ecosystem in India.
#Zerodha #Nifty50 #ETFs #IndexFunds #PassiveInvesting #IndianStockMarket #FinanceNews #LowCostInvesting #VishalJain
