NFO Alert: Zerodha Mutual Fund Launches Nifty MidSmallcap400 50:50 Index Fund

Zerodha Mutual Fund has opened subscriptions for its Nifty MidSmallcap400 50:50 Index Fund – Direct Growth plan from 23 March 2026. The new fund offer will close on 6 April 2026. The scheme is open-ended, allowing ongoing purchases and redemptions after the NFO period. 

The minimum investment amount is set at ₹100. There is no lock-in period attached to the scheme, and no exit load has been specified. The fund is available only under the growth option. 

Investment Objective 

The scheme seeks to generate returns, before expenses, that correspond to the total returns of the Nifty MidSmallcap400 50:50 Index.  

Any deviation in performance may arise due to tracking error, which shows the difference between the fund’s returns and that of the benchmark. 

As a passive fund, it does not attempt to outperform the index but instead aims to mirror its composition and performance. 

Portfolio Construction Approach 

The underlying index follows a 50:50 allocation between mid-cap and small-cap stocks. This structure provides exposure across 2 segments of the equity market, covering a broad set of companies beyond large caps. 

The fund will invest in the same securities and in similar proportions as the index, subject to practical considerations such as liquidity and costs. 

Benchmark and Risk Level 

The scheme is benchmarked against the Nifty MidSmallcap400 50:50 Total Return Index (TRI), which accounts for both price changes and dividends. 

Based on the riskometer classification, the fund falls under the “Very High” risk category. This is in line with the nature of mid-cap and small-cap stocks, which can see wider price fluctuations compared to large-cap equities. 

Fund Management 

The scheme is managed by Kedarnath Mirajkar. As an index fund, the role of the fund manager is primarily to ensure that the portfolio closely tracks the benchmark. 

Read More: JioBlackRock Large Cap Fund NFO Opens Tomorrow, March 24! 

Conclusion 

The fund provides exposure to a mix of mid-cap and small-cap stocks through an index based structure, with no lock-in and a low minimum investment requirement. 

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.