Zerodha Mutual Fund has filed draft documents with the Securities and Exchange Board of India (Sebi) for a new fund offer (NFO) named Zerodha Equity and Gold FoF. This will be an open-ended fund of funds scheme, investing in units of equity ETFs/index funds and gold ETFs.
The fund aims to balance risk and reward by diversifying across asset classes. It will primarily invest in equity ETFs/index funds and gold ETFs to generate better risk-adjusted returns. The benchmark for the scheme will be 70% Nifty 200 (TRI) + 30% Domestic Price of Physical Gold. Kedarnath Mirajkar will manage the fund. It will be managed by Kedarnath Mirajkar.
Investors can invest in the scheme with a minimum amount of Rs 5,000 and in multiples of Rs 1 thereafter. The investment strategy will be passive, with an endeavor to maintain an overall allocation of 70% in equity ETFs/index funds (40% in large cap and 30% in mid cap) and 30% in gold ETFs.
This fund is suitable for investors seeking long-term capital appreciation and income. Investors should be aware that the scheme carries a "very high" risk rating.