Zerodha Nifty 100 ETF

Modified on Fri, 24 May 2024 at 09:03 PM

What is a Zerodha Nifty 100 ETF?

The Zerodha Nifty 100 ETF is an ETF that tracks the performance of the top 100 large-cap companies listed on the National Stock Exchange (NSE) from the universe of Nifty 500 companies. The weights of each of the companies in this ETF are determined by the market capitalization % of them. 

Why should someone consider investing in the Zerodha Nifty 100 ETF?

This ETF offers a simple option to invest in all the top 100 companies in India by market capitalization. These companies tend to be the market leaders of their respective sectors and are known for their role in the growth of the economy.

Hence by investing in Zerodha Nifty 100 ETF, an investor can take advantage of diversification across 100 companies that operate across all the major sectors of the economy.

What is the ideal investment time horizon for the Zerodha Nifty 100 ETF?

As the underlying asset of this ETF is equity shares, which are volatile by nature, it is generally recommended to invest in the ETF keeping a long horizon in mind. 

How do I know that the Zerodha Nifty 100 ETF is trading at the right price on the exchange?

Investors can rely on the Intraday Net Asset Value (iNAV) to check if a Nifty 100 ETF is being traded at a fair price on the exchange. The iNAV is calculated based on the real-time market value of the ETF's portfolio throughout the trading day, with updates occurring every second. You can track it on our website.

What are the benefits of investing in Zerodha Nifty 100 ETF?

The Zerodha Nifty 100 ETF is suitable for investors who are seeking broad exposure to India's largest companies. It is particularly suitable for investors who:

- Want diversified exposure to large-cap stocks in India.

- Prefer a low-cost investment option.

- Are looking for a simple and potentially effective long-term wealth creation solution.

What is the average return expected from Zerodha Nifty 100 ETF?

The expected returns of Zerodha Nifty 100 ETF closely correspond to the total returns of the Securities as represented by the NIFTY 100 Index, subject to tracking errors.

However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

Can I redeem Zerodha Nifty 100 ETF units anytime?

Yes, being an open-ended ETF, investors can redeem Zerodha Nifty 100 ETF units at any time, subject to the terms and conditions specified in the Scheme Information Document.

Does Zerodha Nifty 100 ETF pay dividends?

No, the Zerodha Nifty 100 ETF only offers a growth option, meaning it doesn't pay dividends to investors. Instead, it focuses on increasing its Net Asset Value (NAV) over time. 

Can Zerodha Nifty 100 ETFs be pledged as collateral margins in the trading account? 

Yes, it will be available for pledging once it is cleared by the clearing corporation of India Limited. Furthermore, the availability of margins will be subject to the policies of the individual broker.

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