What is the Zerodha BSE Top 10 Banks ETF?
It is an open-ended exchange-traded fund to replicate and track the performance of the BSE Top 10 Banks Total Return Index (TRI), subject to tracking error.
What does the BSE Top 10 Banks Index consist of?
The BSE Top 10 Banks Index aims to track the performance of the largest 10 stocks based on Free Float Market capitalization in the Banks Industry. Companies which are classified as 'Banks' at Industry level would comprise of eligible Universe. Single constituent weights are capped at 33%, and the aggregate weight of the top three index constituents shall not be more than 63% of the index. The index is reconstituted semi-annually in June and December.
Why is the fund benchmarked to the Total Return Index (TRI)?
A Total Return Index accounts for both price changes and the reinvestment of dividends paid out by constituent stocks. Benchmarking to TRI provides a realistic and complete measurement of performance against the underlying banking sector.
When does the New Fund Offer (NFO) open and close?
The NFO opens on October 12, 2026 and closes on October 26, 2026.
What is the NFO price?
Units are offered at face value of ₹100 per unit during the NFO period (subject to statutory deductions, if any).
What is the Creation Unit Size for direct transactions with the AMC?
The Creation Unit Size is 10,000 units (and multiples thereof).
Does this fund offer a "Regular Plan" with distributor commission?
No. The scheme operates with a direct-plan cost structure without distributor commissions or trail fees.
Can I hold units of this ETF in a physical mutual fund folio?
The Units of the Scheme are only available in dematerialised (electronic) form.
Investors intending to Invest in the Units of the Scheme will be required to have a beneficiary account with a Depository Participant (DP) of the NSDL/ CDSL and will be required to mention in the application form DP's Name, DP ID No. and Beneficiary Account No. with the DP at the time of purchasing Units.
What is the minimum investment amount during the NFO?
During the NFO, the minimum application amount is ₹1,000 and in multiples of ₹1,000 thereafter.
When will the scheme reopen for continuous trading after the NFO?
The scheme will reopen for continuous trading within 5 business days from the date of allotment of units.
How can retail investors buy or sell units post-NFO?
On Stock Exchanges: All categories of investors can buy or sell units on the NSE or BSE during normal trading hours in a minimum lot size of 1 unit at market prices.
Directly with the Fund: Reserved strictly for designated Market Makers and Large Investors transacting in Creation Unit Size (10,000 units). For Large Investors, the transaction value must exceed ₹25 crore (this threshold limit does not apply to Market Makers).
Can regular retail investors redeem directly with the AMC?
Normally, no. Retail investors buy and sell on the exchange. However, direct redemption with the AMC is permitted for transactions up to ₹25 crore under exceptional liquidity conditions, such as:
The ETF closing price trades at a discount greater than 1% to day end NAV for 7 consecutive trading days.
No quotes are available on stock exchanges for 3 consecutive trading days.
The total bid size on the exchange is less than half the Creation Unit Size daily, averaged over a period of 7 consecutive trading days.
When is the NAV Disclosed by the AMC?
The AMC shall disclose the NAV for each Business day as below:
On the website of the AMC - 11.00 P.M. of every business day
On the website of Association of Mutual Funds in India (AMFI) - 11.00 P.M. of every business day.
Can I switch into or out of this scheme from another scheme?
No. Switch-in and switch-out requests will be accepted under the Scheme.
Is there an exit load on this scheme?
No. Exit load is Nil.
Does the scheme pay dividends (IDCW)?
No. The scheme does not have an Income Distribution cum Capital Withdrawal (IDCW) / dividend policy. Dividends received from constituent stocks are retained and reinvested within the fund.
How are capital gains taxed on this ETF?
Because the scheme invests 95%–100% in equity securities of the BSE Top 10 Banks Index, it is taxed as an equity-oriented fund (provided Securities Transaction Tax - STT is paid):
Short-Term Capital Gains (held ≤ 12 months): Taxed at 20% (+ applicable surcharge and 4% cess).
Long-Term Capital Gains (held > 12 months): Taxed at 12.5% on capital gains exceeding ₹1,25,000 in a financial year (without indexation benefits).
(Note: Tax laws are subject to changes; investors should consult a certified tax advisor for individual guidance).
What is the risk level assigned to this scheme?
The Scheme Riskometer and Benchmark Riskometer both rate this fund at Very High Risk.
What are the scheme specific risks associated with this ETF?
Absence of Prior Active Market: Although the units of ETFs are listed on the Stock Exchange for trading, there can be no assurance that an active secondary market will develop or be maintained.
Lack of Market Liquidity: Trading in units of ETFs on the Stock Exchange on which it is listed may be halted because of market conditions or for reasons that, in the view of the concerned Stock Exchange or Market Regulator, trading in the ETF Units is inadvisable.
Units of Exchange Traded Funds May Trade at Prices Other than NAV: Units of Exchange Traded Funds may trade above or below their NAV. The NAV of Units of Exchange Traded Funds may fluctuate with changes in the market value of a Scheme’s holdings.
Regulatory Risk: Any changes in trading regulations by the Exchange or SEBI may affect the ability of the market maker to arbitrage resulting into wider premium/ discount to NAV.
Political Risks: It is possible that the future changes in the Indian political situation, including political, social or economic instability, diplomatic developments and changes in laws and regulations could have an effect on the value of investments.
Tracking Error/ Tracking Difference Risk: Tracking Error & Tracking Difference may arise including but not limited to the following reasons:
1. Expenditure incurred by the fund.
2. The holding of cash positions. The fund may not be invested at all time as it may keep a portion of the funds in cash to meet redemptions.
3. The fund will deploy available funds into TRI-PARTY REPO at various points during the day, which may differ from weighted average rate published by CCIL at end of the day (considered for index return computation).
4. Execution of large buys / sell orders.
5. Transaction cost.
6. Realisation of Unit holders funds.
7. Securities trading may halt temporarily due to circuit filters
Who should consider investing in this ETF?
This fund is suitable for long-term investors seeking exposure to India's top 10 banking institutions, who have a high-risk appetite and are comfortable with sector concentration and stock market volatility.
Mutual Fund Investments are Subject to Market Risks, Read all Scheme Related Documents Carefully
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