Zerodha Asset Management Ltd, one of India’s newest fund houses, has filed draft documents with the Securities and Exchange Board of India (SEBI) to launch its first two schemes.
In August, Nithin Kamath-led Zerodha received final approval from SEBI to launch mutual fund schemes.
Zerodha Fund House (ZFH) is a joint venture (JV) between Zerodha and fintech platform Smallcase.
The company is aiming to launch 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 Midcap250 Index Fund.
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The ELSS scheme is a tax-saving scheme that will give Section 80C tax deduction benefits up to an investment of Rs 1.5 lakh. The other scheme is a normal, diversified equity fund.
The Nifty LargeMidcap 250 shows the performance of a portfolio of 100 large-cap and 150 mid-cap companies listed on the NSE, represented through the Nifty 100 and the Nifty Midcap 150 index respectively.
In August, founder Nithin Kamath announced that Zerodha is all set to enter the asset management segment as it received regulatory approval to establish Zerodha Fund House.
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 a tax benefit following the LargeMidcap 250 index.
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On the other hand, the Nifty Large Midcap 250 Index Fund is an open-ended scheme following the Nifty LargeMidcap 250 index.
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