NFO Alert: Want Equal Exposure to Mid-Smallcaps? Zerodha’s New Index Fund Opens for Subscription | Check Info

NFO Alert: All the risk-averse investors willing to include midcap and small-cap stocks in their portfolio, pay attention! Zerodha Fund House on Monday, March 23, announced the launch of the Zerodha Nifty MidSmallcap400 50:50 Index TRI. The open-ended equity index fund tracks Nifty MidSmallcap 400 50:50 Index TRI.

As per the company, the Zerodha NFO offers investors an opportunity to invest in both midcap and smallcap stocks simultaneously, while aiming to balance exposure and reduce the overall volatility typically associated with these segments. Here are all the details about it.

Zerodha Nifty MidSmallcap 400 50:50 Index Fund: What Is The Aim?

The fund offers investors a simple way to allocate equally to both the mid-cap and small-cap segments of the Indian stock market. The fund offers investors an easier way to gain exposure to high-growth stocks without stepping into the volatility zone.

Zerodha Nifty MidSmallcap 400 50:50 Index Fund: Min Investment Required
The fund offers equal exposure to mid-cap and small-cap shares and has a minimum investment amount of Rs 100, targeting investors with higher risk tolerance and long-term goals.

Explaining the idea behind the launch, Vishal Jain, CEO, Zerodha Fund House said, "We've always believed that investing should be simple and accessible. A lot of India's growth story is still unfolding beyond the top 100 companies - and Zerodha Nifty MidSmallcap400 50:50 Index Fund is our way of making that accessible to every investor."

About Nifty MidSmallcap400 50:50 Index

The Nifty MidSmallcap400 50:50 Index covers 150 mid-cap and 250 small-cap firms that sit outside the 100 largest companies, with the index seeking to maintain an equal 50:50 weight between the two size segments.

The fund house positions the Zerodha Nifty MidSmallcap 400 50:50 Index Fund as a satellite allocation alongside a core portfolio. As per the fund house, the NFO will offer exposure to mid and small-cap categories may offer higher growth potential but also greater volatility, creating a different risk-return profile for patient, long-term investors.

About Zerodha AMC

Zerodha AMC, which manages the schemes of Zerodha Fund House, is a joint venture between Zerodha Broking Ltd and Smallcase Technologies Pvt Ltd. Zerodha Fund House states that its products aim to reflect the parent entities' focus on simplicity, cost awareness and transparency, and that this approach is intended to help a newer base of investors participate in the capital markets.

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