Zerodha Fund House has officially launched two new investment products — the Zerodha Nifty 50 ETF and the Zerodha Nifty 50 Index Fund. Both are open-ended schemes designed to replicate the performance of the Nifty 50 Index-TRI, India’s most widely tracked stock market benchmark. The launch further cements Zerodha’s position in the mutual fund space, where it has been focusing on simple, low-cost, and transparent investment solutions.
The New Fund Offer (NFO) for the Index Fund will allot units on October 14, 2025, and reopen for ongoing subscriptions from October 17, 2025. Meanwhile, the ETF will be listed on exchanges on October 20, 2025.
Investment Objective
The investment goal of both the ETF and the Index Fund is straightforward: to passively invest in equity and equity-related securities by replicating the composition of the Nifty 50 Index, subject to tracking errors. While the objective is to mirror the index as closely as possible, investors are cautioned that there is no guarantee that the schemes will always achieve perfect alignment with the benchmark.
CEO’s Perspective
Vishal Jain, Chief Executive Officer at Zerodha Fund House, emphasized the importance of the Nifty 50 as a symbol of India’s economic journey.
“The Nifty 50 is more than just an index; it acts as a barometer for the Indian economy. As the most tracked and traded benchmark in our market, it represents the pulse of the nation’s growth,” Jain said.
He added that the new schemes provide investors with a simple, low-cost way to own a stake in the 50 largest companies driving India’s growth story. By aligning portfolios with the Nifty 50, investors essentially mirror the performance of India’s corporate leaders across diverse sectors.
Fund Management
The designated fund manager for both the Zerodha Nifty 50 ETF and the Zerodha Nifty 50 Index Fund is Kedarnath Mirajkar, an experienced hand in managing passive equity products. His responsibility will be to ensure that the funds track the Nifty 50 Index effectively while minimizing tracking error — the small difference between the fund’s returns and the index returns.
Investment Requirements
According to the Scheme Information Document (SID):
- Zerodha Nifty 50 ETF: The minimum investment during the NFO is ₹1,000 and in multiples thereof.
- Zerodha Nifty 50 Index Fund: The minimum investment is set at ₹100 and in multiples thereof.
Both schemes have been designed to be accessible to retail investors, with the Index Fund offering one of the lowest entry points among index-based products.
Exit Load and Costs
In line with Zerodha’s low-cost philosophy, no exit load will be charged on redemptions or switches from either of the two schemes. This makes them particularly attractive to investors who may need liquidity but still want long-term exposure to equities.
Though management charges and tracking errors will apply, the overall expense ratio of index funds and ETFs is expected to be much lower than that of actively managed equity mutual funds.
Risk Profile
Both products come with a “Very High Risk” tag on the risk-o-meter. Since they invest directly in equities, investors must be prepared for day-to-day fluctuations in value.
According to the Asset Management Company (AMC), these schemes are suitable for:
- Investors who understand that short-term volatility is a natural part of equity markets.
- Those who have a long-term horizon and are willing to stay invested through market ups and downs.
- Individuals seeking a low-cost passive investment option aligned with India’s top 50 companies.
The AMC also advises investors to consult financial advisors if they are uncertain about whether the product suits their risk tolerance and investment goals.
Why Choose Nifty 50 Index-Based Products?
The Nifty 50 Index comprises the largest and most liquid companies listed on the National Stock Exchange (NSE), spanning sectors such as banking, information technology, energy, consumer goods, and automobiles.
Key Advantages of Investing in Nifty 50-Based Funds:
- Diversification: Exposure to 50 blue-chip companies reduces the risk of investing in individual stocks.
- Low Cost: Passive funds typically have much lower expense ratios than active funds.
- Market Representation: The Nifty 50 is often referred to as the barometer of the Indian economy, making it a reliable proxy for overall market performance.
- Simplicity: Suitable for both beginner and experienced investors who want a no-frills, long-term equity investment.
Investor Outlook
Market experts believe Zerodha’s new offerings will appeal to a wide range of investors, particularly first-time mutual fund investors drawn to the simplicity of index funds. ETFs, on the other hand, are expected to attract more market-savvy investors who prefer trading units directly on exchanges.
The timing of the launch also aligns with increasing retail participation in mutual funds and equities in India, driven by higher disposable incomes and digital investment platforms.
Who Should Avoid These Funds?
While index funds and ETFs are ideal for long-term wealth creation, they may not be suitable for:
- Investors seeking short-term returns or guaranteed income.
- Individuals with a low tolerance for volatility.
- Those who expect the fund to beat the market, since index funds are designed only to match market returns.
Conclusion
With the launch of the Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund, Zerodha Fund House has strengthened its footprint in India’s rapidly evolving mutual fund space. Offering investors a transparent, low-cost gateway into the Nifty 50, the schemes underscore the rising popularity of passive investing in India.
As Vishal Jain put it, these funds allow investors to “own a piece of the 50 largest companies driving India forward.” For long-term investors seeking simplicity, diversification, and affordability, these new products could become an attractive addition to their portfolios.
References
- The Economic Times – Zerodha Fund House launches Nifty 50 ETF, Index Fund
- NSE India – Nifty 50 Index Overview
- SEBI – Mutual Fund Regulations and Disclosures
Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
