NFO Alert: Zerodha Mutual Fund Launches Nifty 8-13 Year G-Sec ETF

Zerodha Mutual Fund will launch the Zerodha Nifty 8-13 Yr G-Sec ETF through a New Fund Offer (NFO) opening on August 8, 2025, and closing on August 12, 2025. The scheme is an open-ended debt Exchange Traded Fund (ETF) that aims to mirror the Nifty 8-13 Yr G-Sec Index. Units are offered at a face value of ₹10.

Fund Objective and Strategy

The ETF seeks to generate returns in line with the total returns of the Nifty 8-13 Yr G-Sec Index, subject to tracking error. It follows a passive investment strategy, with at least 95% of assets invested in securities forming part of the index. The remaining up to 5% may be allocated to money market instruments.

Risk Classification and Portfolio Management

The scheme carries a relatively high interest rate risk and relatively low credit risk, placing it under risk class A-III. There will be no active security selection or tactical shifts based on macroeconomic views. Temporary deviations from index weights may be corrected within 7 calendar days.

Subscription and Trading

The minimum investment during the NFO is ₹1,000. Post-NFO, the units will be listed on the NSE and BSE and can be traded like stocks. For large investors and market makers, transactions can be made directly with the fund in creation unit sizes of 1.5 lakh units, provided the value exceeds ₹25 crore.

Expenses and Exit Load

There is no exit load applicable to the scheme. The total expense ratio (TER) will be capped at 1% of daily net assets. Daily NAVs will be disclosed on the AMC and AMFI websites by 11:00 PM. The fund will be managed by Kedarnath Mirajkar, who has 19 years of experience in the financial sector.

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Conclusion

The ETF offers market-linked returns based on government securities with maturities between 8 and 13 years. Tracking error may impact actual returns versus the benchmark.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund  Investments are subject to market risks, read all the related documents carefully before investing.