NFO Alert: Zerodha Mutual Fund Launches Nifty Short Duration G-Sec Index Fund

Zerodha Mutual Fund has announced a new debt index scheme, the Zerodha Nifty Short Duration G-Sec Index Fund – Direct Plan (Growth).  

The scheme is open-ended and is to track the Nifty Short Duration G-Sec Index, which consists of short-duration Government of India securities.  

Subscription Period and Unit Price 

The New Fund Offer (NFO) will be open for subscription from December 26, 2025 to January 9, 2026. During this period, units will be issued at a face value of ₹1,000 per unit.  

The scheme does not charge any entry or exit load. Investors can apply with a minimum amount of ₹100, and additional investments can be made in multiples of ₹1. 

Scheme Objective and Structure 

According to the offer document, the objective of the scheme is to provide returns that closely correspond, before expenses, to the total returns of the securities that make up the benchmark index.  

The fund follows a passive investment approach and seeks to mirror the index composition rather than make active investment decisions. The document states that there is no guarantee that the investment objective will be met. 

Asset Allocation and Risk Classification 

The fund will invest 95-100% of its assets in government securities that are part of the Nifty Short Duration G-Sec Index. Up to 5% of the portfolio may be held in cash or money market instruments to manage liquidity and operational requirements.  

The scheme is classified as having moderate interest rate risk and relatively low credit risk, reflecting its exposure to sovereign-backed securities. 

Benchmark and Fund Management 

Performance of the scheme will be measured against the Nifty Short Duration G-Sec Index (Total Returns Index). The fund will be managed by Kedarnath Mirajkar, who is responsible for several passive schemes at Zerodha Asset Management. As this is a new offering, the scheme does not have any historical performance data. 

Read More:  Kotak MF Launches Nifty Next 50 ETF: A Low-Cost Bet on India’s Future Bluechip Leaders! 

Conclusion 

The Zerodha Nifty Short Duration G-Sec Index Fund adds another short-duration government securities option to the passive debt segment. Its returns will largely track movements in the underlying index, subject to tracking error and expenses, rather than active portfolio management decisions. 

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.