Zerodha Mutual Fund has launched a new large-cap index scheme — Zerodha BSE SENSEX Index Fund Direct – Growth, now open for subscription from 20th October to 3rd November 2025. With a very high-risk profile, this NFO aims to provide returns that closely track the performance of the BSE Sensex Total Return Index (TRI) by investing in the same set of 30 large-cap companies.
Key NFO Details
| Detail | Information |
| Fund Name | Zerodha BSE SENSEX Index Fund Direct – Growth |
| NFO Period | 20 Oct 2025 to 03 Nov 2025 |
| Allotment Date | 06 Nov 2025 |
| Category | Equity – Large Cap Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | BSE Sensex TRI |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | 0% |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme seeks to:
• Provide passive investment exposure in equity and equity-related securities replicating the BSE SENSEX Index composition.
• Generate returns that mirror the total performance of the BSE Sensex TRI, subject to tracking errors.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 12.45% |
| 3 Years | 13.71% |
| 5 Years | 14.05% |
| 7 Years | 15.04% |
| 10 Years | 14.05% |
| 15 Years | 12.99% |
| Since Inception | 12.10% |
These averages provide insight into how large-cap index funds based on the Sensex and similar benchmarks have performed historically.
Should You Invest in This NFO?
Investing in this NFO makes sense if:
• You want low-cost, passive exposure to India’s top 30 large-cap companies.
• You prefer index-based investing for steady, market-linked growth.
• You are comfortable with very high market volatility in exchange for long-term wealth creation.
Note that NFOs have no performance track record, making them ideal for informed investors confident in index-based strategies.
About Zerodha Mutual Fund
Zerodha Mutual Fund manages ₹7,416 Cr AUM (as of September 30, 2025) and offers a focused range of passive and index-based equity schemes. Some of their existing offerings include:
| Fund Name | AUM | 1Y | 5Y |
| Zerodha ELSS Tax Saver Nifty Large Midcap 250 Index Fund | 223 Cr | 3.21% | N.A. |
| Zerodha Nifty Large Midcap 250 Index Fund | 1,102 Cr | 3.14% | N.A. |
| Zerodha Nifty 50 Index Fund | N.A. | N.A. | N.A. |
Additionally, leading index funds in the category include:
| Fund Name | Fund Size | 5Y Returns |
| DSP Nifty 50 Equal Weight Index Fund | ₹2,285 Cr | 23% p.a. |
| Sundaram Nifty 100 Equal Weight Fund | ₹123 Cr | 21% p.a. |
| Nippon India Nifty Next 50 Junior BeES FoF | ₹607 Cr | 21% p.a. |
Final Thoughts
For investors looking to mirror the performance of India’s flagship BSE Sensex Index, the Zerodha BSE SENSEX Index Fund NFO offers a simple and cost-efficient route to large-cap equity exposure.
Before investing, review the scheme document carefully and ensure it aligns with your long-term investment objectives and risk appetite.
