Zerodha Fund House has launched its third ETF, the Zerodha Nifty 100 ETF, with a New Fund Offer (NFO) on May 27, 2024. Investors can apply for this NFO with a minimum investment of ₹1000. The NFO for the Zerodha Nifty 100 ETF will close on June 7, 2024. After the allocation of units to the investors, the scheme will be reopened within 5 working days. Investors and traders will be able to buy and sell the Zerodha Nifty 100 ETF during market hours, just like stocks.
Zerodha Nifty 100 ETF – NFO Overview
| Attribute | Details |
|---|---|
| Application Start Date | May 27, 2024 |
| Application End Date | June 7, 2024 |
| Risk | Very High |
| Lock-in Period | No lock-in for this ETF |
| Minimum Investment | ₹1000 |
| Benchmark | Nifty 100 (TRI) |
| Allotment NAV | ₹10 |
| Face Value | ₹10/unit |
| Minimum Purchase (on exchange) | 1 unit |
| Creation Unit Size | 7,55,000 units |
| Exit Load | 0% |
| Entry Load | Not Applicable |
| Expense Ratio | To be decided later |
| Fund Manager | Kedarnath Mirajkar |
| Allotment Date | – |
| Listing Date | – |
Zerodha Nifty 100 ETF Fund Overview
Through the Zerodha Nifty 100 ETF (Exchange Traded Fund), investors will be able to invest in the top 100 companies in India, which are also known as large-cap companies. These companies represent various sectors of the Indian economy. By investing in the Zerodha Nifty 100 ETF, investors will also benefit from diversification.
By investing in this ETF, investors will benefit from investing in top market cap companies. These companies are market leaders in their respective sectors. Large-cap companies provide stability to an investor’s portfolio during market fluctuations. By investing in this instrument, investors can achieve stable growth in their portfolios over the long term.
Zerodha Coin Mutual Fund Cut-Off Times
Zerodha Nifty 100 ETF should be considered by investors who want to invest their money in large-cap companies and have a long-term mindset and time frame. After listing, investments in the Zerodha Nifty 100 ETF can start from as low as ₹10. The top 100 large-cap companies are part of the Nifty 500, which is classified based on total market capitalization.
Nifty 100 ETF Past Performance
If an investment of ₹10,000 had been made in the Nifty 100 Index on January 1, 2003, it would have grown to ₹3.18 lakh at a CAGR of 17.55%. In the same period, the amount would have grown to ₹41,734 at a CAGR of 6.90% in a fixed deposit, while in a savings bank account, it would have become ₹20,978 at a CAGR of 3.52%.
If a monthly SIP of ₹10,000 had been made in the Nifty 100 Index from January 1, 2003, it would have grown to ₹1.63 crore at a CAGR of 14.98%. In the same period, the amount would have grown to ₹56.72 lakh at a CAGR of 6.84% in a fixed deposit, while in a savings bank account, it would have become ₹37.83 lakh at a CAGR of 3.46%.
Note: Past performance is not a guarantee of future returns.
How Zerodha Nifty 100 ETF will be taxed
If the investor’s holding period is less than 1 year, they will have to pay 15% short-term capital gains tax on the profit. If the investor’s holding period is more than 1 year, there will be no tax liability on capital gains up to ₹1 lakh in a financial year. However, for-profits exceeding ₹1 lakh, a 10% tax will be applied on the amount over ₹1 lakh.
How to apply for Zerodha Nifty 100 ETF NFO
Investors can currently apply for the Zerodha Nifty 100 ETF NFO through Coin by Zerodha and CAMS Online.
Conclusion
This fund offers a promising opportunity for investors seeking broad market exposure by investing in India’s top 100 companies. It provides diversification, liquidity, and cost efficiency. However, given the high-risk nature of the fund, investors must assess their risk tolerance and investment objectives before investing.
Disclaimer: Investing in the stock market is subject to market risks. Please consult your financial advisor before making any investments.
Also read: When is the Right Time to Invest in the Stock Market?