Discount broking firm Zerodha has filed papers with the market regulator Securities and Exchange Board of India (SEBI) to launch two passive funds. This comes nearly a month after it got the nod from the market regulator to set up Zerodha Asset Management Ltd.
Zerodha AMC will launch passive schemes. It has filed draft offer documents with the market regulator to launch two schemes. The two funds are Zerodha Tax Saver (ELSS) Nifty LargeMidcap 250 Index Fund and Zerodha Nifty LargeMidcap 250 Index Fund. Both are passive index funds, tracking the Nifty LargeMidcap 250 Index Fund.
The Zerodha Tax Saver Nifty LargeMidcap 250 Index Fund is an open-ended passive equity-linked savings scheme, with a lock-in period of 3 years. It will offer a deduction on such investment under the 80C income tax for investments up to ₹1.5 lakh.
While, Zerodha Nifty LargeMidcap 250 index fund is also an open-ended scheme, but a normal diversified scheme. The corpus of the scheme will be invested in equity and equity-related instruments, debt, money market instruments and other permitted instruments.
Last month, Vishal Jain was announced as the CEO of Zerodha AMC. In April, both Zerodha and Smallcase announced that they would set up a joint venture to launch the Zerodha AMC business