- By Vaamanaa Sethi
- Tue, 05 Sep 2023 10:16 AM (IST)
- Source:JND
Zerodha Fund House has filed draft documents with Securities Exchange Board of India (SEBI) to launch its first two schemes. Last month, Zerodha founder Nikhil Kamath said that the company got its final approval from SEBI to launch Zerodha Asset Management Ltd.
Zerodha FH is a joint venture between the leading brokerage firm Zerodha and fintech platform smallcase.
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Zerodha has submitted draft offer documents to the market regulator to launch two new schemes — 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.
Zerodha’s first launched scheme to be a passive fund benchmarked to Nifty Large Midcap 250 Index Fund. The ELSS scheme is a tax-saving program that provides the advantages of Section 80C tax deductions, allowing you to save taxes on investments of up to ₹1.5 lakh. This sets it apart from traditional diversified equity funds.
According to the exchange filing, ELSS scheme is an actively managed, open-ended equity-linked savings scheme. It comes with a mandatory lock-in period of three years and offers tax benefits while closely mirroring the performance of the Nifty LargeMidcap 250 Index.
“The scheme is an equity linked saving scheme and intends to meet the requirements of any other notification/regulations that may be prescribed by government /regulatory bodies from time to time," said the filing.
On the other side, Nifty Large Midcap 250 Index Fund is an open-ended scheme replicating/tracking Nifty LargeMidcap 250 index.
It further added, “The investment objective of the scheme is to invest in stocks comprising the Nifty LargeMidcap250 Index in the same proportion as in the index to achieve returns equivalent to the Total Return Index of Nifty LargeMidcap250 Index.”
Zerodha founder Nikhil Kamath had announced in August that the company is all set to enter asset management space as the company received the regulatory green signal to establish Zerodha Fund House.
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“We just received the final approval for the Zerodha Fund House we are building in partnership with Smallcase. Our motivation to start a mutual fund was twofold. The first was that the biggest challenge and opportunity for Indian markets is shallow participation. Even after all the growth over the last 3 years, we only have maybe 6-8 crore unique mutual fund and equity investors put together," Nithin Kamath said in a LinkedIn post.
