The papers say the investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty LargeMidcap 250 Index TRI (underlying Index), subject to tracking error. "However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved."

Being an index scheme, its net assets will be invested in the same weightage as the stocks constituting the Nifty LargeMidcap 250 Index.

Zerodha Nifty LargeMidcap 250 Index Fund

This scheme is an open-ended scheme replicating/ tracking the Nifty LargeMidcap 250 Index. Zerodha says its investment objective is to generate returns that are commensurate with the performance of the Nifty LargeMidcap 250 Index TRI (underlying Index), subject to tracking error.

The scheme will cover equities and equity-related securities covered by Nifty LargeMidcap 250 Index, and debt and money market instruments.

The funds raised under the scheme will be invested in the stocks, and the scheme, being an index scheme, the net assets will be invested in the same weightage as the stocks constituting the Nifty LargeMidcap 250 Index.

The scheme will not invest securitised debt, debt instruments with special features (AT1 and AT2 Bonds); debt instruments with SO/CE; overseas investments; ReITs and InVITs; units of other mutual funds; repo or reverse repo transactions in corporate debt securities; and credit default swap transactions.

Zerodha had reported net profits of ₹2,094 crore on a revenue of ₹4,964 crore in FY22. Currently, 70% of Zerodha’s revenue comes from broking and trading fees, 15% from treasury (the company’s own funds invested mostly in debt and fixed deposits), float (unused customer funds) generates 3-3.5% as they are parked as short-term FDs with clearing corporation and, and the remainder (15%) comprises account opening fees, annual maintenance charges, DP charges, and others.

Zerodha ELSS Nifty Large Midcap 250 Index Fund

Zerodha files papers with SEBI to launch 2 MF schemes