Zerodha Mutual Fund has launched a new large-cap index scheme — Zerodha Nifty 50 Index Fund Direct – Growth, now open for subscription from 26th September to 10th October 2025. With a very high-risk profile, this NFO aims to provide investors with exposure to equity and equity-related securities replicating the Nifty 50 Index, seeking returns that track the total return of the index with minimal tracking errors.
Key NFO Details
| Detail | Information |
| Fund Name | Zerodha Nifty 50 Index Fund Direct – Growth |
| NFO Period | 26 Sep 2025 to 10 Oct 2025 |
| Allotment Date | 14 Oct 2025 |
| Category | Equity – Large Cap Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | Nifty 50 Total Return |
| 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:
• Offer passive investment in equity and equity-related securities replicating the Nifty 50 Index.
• Track the performance of the Nifty 50 Index while minimising tracking errors.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | 5.79% |
| 3 Years | 12.12% |
| 5 Years | 13.29% |
| 7 Years | 14.33% |
| 10 Years | 13.59% |
| 15 Years | 12.69% |
| Since Inception | 11.89% |
Should You Invest in This NFO?
Investing in this NFO makes sense if:
• You are seeking very high-risk exposure to India’s top 50 large-cap companies.
• You want to replicate Nifty 50 performance with minimal tracking error.
• You prefer passive index investing for long-term growth.
Do note that NFOs have no past performance record, making them suitable for informed and risk-tolerant investors.
About Zerodha Mutual Fund
Zerodha Mutual Fund manages ₹6,349 Cr AUM (as of June 30, 2025) and has a focused range of equity index funds, including:
| Fund Name | AUM | 1Y | 5Y |
| Zerodha ELSS Tax Saver Nifty Large Midcap 250 Index Fund | 215 Cr | -4.18% | N.A. |
| Zerodha Nifty Large Midcap 250 Index Fund | 1,058 Cr | -4.25% | N.A. |
Final Thoughts
For investors aiming to gain broad exposure to India’s top 50 large-cap companies, the Zerodha Nifty 50 Index Fund NFO offers a cost-effective and efficient way to track the Nifty 50 index.
Review the scheme document thoroughly and align your investment with your risk appetite and long-term financial goals before subscribing.
