Two papers are submitted to SEBI by Zerodha MF. One of India’s newest fund houses, Zerodha Asset Management Ltd., is preparing to launch mutual fund schemes over a month after receiving its final licence from the Securities and Exchange Board of India (SEBI).
In compliance with its mission to construct passive schemes, Zerodha has submitted draught offer documents to the market regulator for the launch of two schemes, the Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Index Fund and the Zerodha Nifty Large Midcap 250 Index Fund (ZN250).
A tax benefit replicating/tracking the Nifty LargeMidcap 250 index, the Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund is an open-ended passive equity linked saving scheme with a statutory lock-in period of three years, according to SEBI’s filing.
“The scheme is an equity linked saving scheme and intends to meet the requirements of any other notification/regulations that may be prescribed by government/regulatory bodies from time to time,” according to the filing.
To achieve returns equivalent to the index’s total return index, the scheme’s investment objective is to own shares of the same number of firms as the Nifty LargeMidcap250 Index.
The Nifty Large Midcap 250 Index Fund, on the other hand, is an open-ended programme that mimics or tracks the Nifty LargeMidcap 250 index.
“The investment objective of the scheme is to invest in stocks comprising the Nifty LargeMidcap250 Index in the same proportion as in the index to achieve returns equivalent to the Total Return Index of Nifty LargeMidcap250 Index,” according to the filing.