Zerodha Fund House has announced the launch of its two new fund offers (NFOs). These NFOs – Zerodha Nifty 100 ETF and Zerodha Nifty Midcap 150 ETF – will open on May 27 and close on June 7, 2024.

These open-ended, passive, equity Exchange Traded Funds (ETFs) replicate performance of Nifty 100 Total Returns Index (TRI) and Nifty 150 Midcap TRI. Since their inceptions, Nifty 100 TRI has given 17.56% CAGR returns with 21.53% volatility, and Nifty Midcap 150 TRI has yielded 18.06% CAGR return with 21.13% volatility.

The NFOs may be suitable for investors who are looking for long-term capital growth with flexibility to participate independently in both large and mid-cap segments, the fund house said in a statement.

Also read: NFO launch! This Kotak fund has exposure to low volatile companies across sectors | Should you invest?

Who is the fund manager for these Zerodha ETFs?

Both the funds will be managed by Kedarnath Mirajkar, Fund Manager, Zerodha Fund House.

Speaking on the two new fund launches, Vishal Jain, CEO, Zerodha Fund House, said, “As the only passive-only fund houses in India, we have a responsibility to Indian investors to pave the way not just in terms of individual funds, but also in offering new strategic combinations that give them flexibility to gain exposure across different segments of the Indian capital market. The two new ETFs offer an opportunity to investors to get exposure in the key segments that broadly represent the Indian economy, and may capitalize on the India growth story.”

The Zerodha Nifty 100 and Zerodha Nifty Midcap 150 ETFs offer the flexibility to invest in the entire universe of both large-cap and mid-cap segments independently, Zerodha Fund House said.

The Nifty 100 ETF allows investors to get access to the top 100 companies based on full market capitalization that are part of the Nifty 500 universe which are generally considered leaders of their respective sectors. The ETF covers 69% of the free float market capitalization.

The Nifty Midcap 150 ETF gives investors access to a diversified portfolio of emerging companies that may have good growth opportunities and can potentially become the leaders of tomorrow. This ETF covers 15% of the free float market capitalization.