Upcoming NFO: Zerodha Mutual Fund Files for Zerodha BSE Top 10 Banks ETF

Zerodha Asset Management Private Limited has filed a draft Scheme Information Document for the Zerodha BSE Top 10 Banks ETF, an open-ended exchange traded fund tracking the BSE Top 10 Banks Index.  

The scheme will seek returns corresponding to the BSE Top 10 Banks Index TRI, subject to tracking error. The fund is classified under Other Schemes – ETF.  

The proposed face value is ₹100 per unit, with units offered at ₹100 during the NFO, subject to statutory deductions, if applicable. The scheme is marked Very High Risk and does not have a past performance record as it is a new scheme.  

BSE Top 10 Banks Index 

The underlying index selects the 10 banking stocks with the highest average six-month free-float market capitalisation from the BSE 500. The index is reconstituted twice a year, in March and September, with stock weights based on free-float market capitalisation.  

As of July 31, 2026, HDFC Bank was the largest constituent with a 31.84% weight, followed by ICICI Bank at 22.13% and State Bank of India at 9.17%. Kotak Mahindra Bank and Axis Bank had weights of 9.02% and 8.38%, respectively.  

The remaining constituents were Federal Bank, IndusInd Bank, AU Small Finance Bank, IDFC First Bank and Bank of Baroda.  

Portfolio and Trading 

The ETF will be passively managed, with investments made broadly according to the weights of stocks in the index. The portfolio will be rebalanced for changes in index weights and fund inflows or outflows.  

A portion of the assets may be kept in debt and money market instruments for liquidity requirements. The NFO minimum application amount is ₹1,000, while the exit load is nil. On the exchange, investors can buy units in a minimum lot of one unit.  

Direct transactions with the fund will be available to market makers and large investors through creation units of 10,000 units. Large investors will be subject to a ₹25 crore transaction threshold.  

Read More: NFO Alert: Axis Mutual Fund Launches Nifty500 Low Volatility 50 Index! 

Conclusion 

The draft SID sets out a banking-focused ETF tracking 10 stocks selected by the BSE Top 10 Banks Index. The document states that there is no assurance that the scheme's investment objective will be achieved. 

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.