Zerodha is all set to launch two passive funds as it has filed papers with the Security and Exchange Board of India (SEBI). The regulatory body recently approved the company's request to launch its asset management business. The fund house will launch two funds named Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Funds and Zerodha Nifty LargeMidcap 250 Index Funds.
Draft proposal documents have been submitted to the regulator for the launch of Zerodha Tax Saver (ELSS) Nifty Large Midcap 250 Indices Fund and Zerodha Nifty Large Midcap 250 Index Fund (ZN250). The benchmark for both these schemes will be the Nifty Large Midcap 250 Index Fund. ELLL scheme is a tax saving scheme that gives the benefit of Sector 80C tax deduction up to an investment of 1.5 lakhs
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According to SEBI filings, Zerodha Tax Saver Nifty LargeMidCap250 Index Fund is an open-ended passive equity-linked savings scheme with a statutory lock-in period of three years and benefits tracking the Nifty LargeMidCap250 index. The filing said the scheme is an equity-linked savings scheme and intends to meet the requirements of any other notifications/regulations prescribed by the government/bodies from time to time.
In August, Company's founder Nikhil kmath had announced that they are ready to enter the asset management landscape as the company has got the permission from regulatory authority SEBI.
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