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Zerodha Nifty 100 ETF NFO: Review, Opening Date & NAV
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Mutual funds can be an excellent source of passive income, and the best part is you can start with a small investment. The newly launched Zerodha Nifty 100 ETF NFO aims to invest in the Nifty 100 Index to generate profits. In this article, we provide all the details you need to make an informed investment decision, so keep reading!
Zerodha Nifty 100 ETF - NFO Overview
The Zerodha Nifty 100 ETF is ideal for investors looking to invest in both equity and debt-related instruments. With no lock-in period, this fund enables investors to diversify their portfolios by investing in the top 100 companies of India.
Starting from May 27, 2024, and ending on June 7, 2024, the fund will invest in a diversified portfolio, including equity and equity-related securities covered by the Nifty 100 Index TRI and debt-related instruments.
Fund Overview
The Zerodha Nifty 100 ETF-NFO holds an AUM totalling Rs.1,064.43 crores. This fund has a stamp duty of 0.005% (From July 1st 2020). The minimum investment required is Rs 1000.
|
Start Date |
27 May 2024 |
|
End Date |
7 June 2024 |
|
VRO rating |
- |
|
Expense ratio |
NA |
|
Exit load |
Nil |
|
AUM (Fund size) |
Rs. 1,064.43 Cr |
|
Lock-in |
No Lockin |
|
Stamp Duty |
0.005% (From July 1st 2020) |
|
Benchmark Index |
Nifty 100 Total Return Index |
|
Min. investment |
Rs. 1000 |
|
Risk |
Very High |
The Objective of the Fund
The investment objective of the scheme is to invest in stocks comprising the Nifty 100 Index in the same proportion as the index, aiming to achieve returns equivalent to the Total Return Index of the Nifty 100 Index (subject to tracking error).
Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:
|
Types of Instruments |
Minimum Allocation (% of Net Assets) |
Maximum Allocation (% of Net Assets) |
Risk Profile |
|
Equities and equity related securities covered by Nifty 100 Index TRI |
95 |
100 |
Very High |
|
Debt and Money Market Instruments, cash and cash equivalents |
0 |
5 |
Low to Moderate |
Peers of Zerodha Nifty 100 ETF - NFO
|
Equity, Sectoral / Thematic Funds |
1Y Return |
3Y Return |
AUM (Cr) |
|
Nippon India Large Cap Fund-Growth |
39.13 |
23.85 |
26,137.65 |
|
DSP Nifty 50 Equal Weight Index Fund Regular - Growth |
35.21 |
19.21 |
1,345.87 |
|
ICICI Prudential Bluechip Fund-Growth |
38.86 |
20.65 |
54,904.23 |
|
Quant Focused Fund-Growth |
52.84 |
20.43 |
924.73 |
Risk Factors in Such Funds
-
Although ETF units are listed on the stock exchange for trading, there is no assurance that an active secondary market will develop or be maintained.
-
ETF units may trade above or below their net asset value (NAV).
-
Changes in trading regulations by the exchange or SEBI may affect the market maker's ability to arbitrage, potentially leading to wider premiums or discounts to NAV.
-
The returns from the securities in which a scheme invests may underperform compared to the general securities markets or different asset classes.
-
The composition of the underlying index is subject to periodic changes by the index service provider.
-
The extent of the tracking error may impact the scheme's performance.
Past Performance of Equity, Sectoral / Thematic Funds
|
Equity, Sectoral / Thematic Funds |
NAV (Rs) |
Returns since inception |
Return/Risk |
|
Nippon India Large Cap Fund-Growth |
90.42 |
17.26% |
Generated the highest return amongst Large Cap funds in the last 10 Years. |
|
DSP Nifty 50 Equal Weight Index Fund Regular - Growth |
23.93 |
14.12% |
Performing Poorly |
|
ICICI Prudential Bluechip Fund-Growth |
108.35 |
16.67% |
Every unit of risk this fund takes, it produces 20% more returns. |
|
Quant Focused Fund-Growth |
95.21 |
19.41% |
Generated the highest return amongst Focused funds in the last 10 Years. |
Zerodha Nifty 100 ETF NFO - Who can invest
This fund is ideal for those with a higher risk tolerance and who want to gain diversified exposure to a wide range of sectors and industries. The fund invests in equities and equity-related securities covered by the Nifty 100 Index TRI, as well as debt instruments.
Zerodha Nifty 100 ETF NFO - Growth Fund Managers
-
Mr. Kedarnath Mirajkar
Conclusion
This fund presents a promising opportunity for those looking to achieve broad market exposure by investing in India's top 100 companies. It offers investors diversification, liquidity, and cost efficiency. However, the fund carries a high risk, making it essential to evaluate your risk tolerance and investment goals before committing.
Disclaimer: This NFO Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
Frequently Asked Questions
The starting date of Zerodha Nifty 100 ETF – NFO is 27 May 2024.
The end date of Zerodha Nifty 100 ETF – NFO is 7 June 2024.
The fund managers of Zerodha Nifty 100 ETF – NFO is Mr. Kedarnath Mirajkar.
The minimum investment for Zerodha Nifty 100 ETF– NFO is Rs. 1000.
The AUM of Zerodha Nifty 100 ETF – NFO is Rs. 1,064.43 Cr.
