NFO Alert: Zerodha Mutual Fund launches Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund; all you need to know

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Zerodha Mutual Fund announced the launch of the Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund, an open-ended passive equity-linked savings scheme with a statutory lock-in period of three years and tax benefit tracking the Nifty LargeMidcap 250 Index.

The scheme opened for public subscription on October 20, 2023, and will close on November 03, 2023.

This fund aims to invest in stocks that make up the Nifty LargeMidcap 250 Index in a manner that mirrors the index's composition, with the goal of generating returns on par with the Total Return Index of the Nifty LargeMidcap 250 Index, taking into account potential tracking errors. Additionally, investors can benefit from deductions under Section 80C of the Income-tax Act, 1961, when they invest in this scheme.

The investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty LargeMidcap 250 Index TRI (underlying Index), subject to tracking error.

However, there can be no assurance or guarantee that the scheme's investment objective will be achieved.

The scheme shall invest in the following securities as per the limits specified in the asset allocation

table of the scheme, subject to SEBI (Mutual Fund) Regulations. The scheme would invest in stocks constituting the Nifty LargeMidcap 250 Index in a similar proportion (weightage) as in the Index and endeavour to track the benchmark index.

Under normal circumstances, the asset allocation (% of net assets) of the scheme’s portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Risk Profile

Equities and equity-related securities covered by the Nifty LargeMidcap 250 Index

95

100

Very High

Equiti