Zerodha MF files papers with SEBI for two schemes
Asset Management Ltd., one of India's newest fund houses, is getting ready to introduce mutual fund schemes. Zerodha has submitted draft 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), in accordance with its mandate to establish passive schemes.
The benchmark for both schemes would be the Nifty Large Midcap 250 Index Fund. The ELSS scheme is a tax-saving scheme that offers the benefits of Section 80C tax deductions, up to an investment of ₹1.5 lakh, in contrast to the conventional diversified equities fund.
According to SEBI's filing, 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 and tax benefit replicating/tracking Nifty LargeMidcap 250 index. “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," said the filing.
The scheme's investment goal is to invest in the same proportion of companies as the Nifty LargeMidcap250 Index in order to generate returns that are equal to the index's total return index. On the other side, Nifty Large Midcap 250 Index Fund is an open-ended scheme replicating/tracking 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," said the filing. Zerodha Fund House, founder Nithin Kamath announced in
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