The New Fund Offer (NFO) for the Zerodha Nifty Next 100 ETF opened on September 21 and will remain open until October 5, according to the fund house. Once listed, the ETF units will be traded on stock exchanges during market hours through a demat account.
The open-ended scheme will seek to replicate the Nifty Next 100 Index and will be benchmarked against the Nifty Next 100 TRI. As a passive fund, it will aim to invest in index constituents broadly in line with their respective weights, subject to tracking error.
The Nifty Next 100 Index comprises 100 stocks drawn from the Nifty Next 50 and the top 50 stocks of the Nifty Midcap 150, according to the fund house. The index is intended to represent companies that fall between the largest companies represented in the Nifty 50 and the broader midcap universe.
As of the data cited by Zerodha Fund House, the index had its largest sector allocations to financial services at 22.59%, capital goods at 14.35% and healthcare at 9.57%. The index had an approximate 65% allocation to large-cap stocks and 35% to midcap stocks, based on the market-cap categorisation cited by the fund house.
The Nifty Next 100 TRI recorded a compounded annual growth rate (CAGR) of 13.34% between its inception on October 1, 2010 and August 31, 2026, according to historical index data cited by Zerodha Fund House. Its five-year and one-year CAGRs for the period were 14.97% and 13.49%, respectively.
These figures represent the historical performance of the underlying index and not the performance of the newly launched ETF. The ETF does not have an operating track record, and its returns can differ from the index because of tracking error, expenses and other factors.The launch comes as asset management companies continue to add passive products tracking broader market indices, giving investors access to baskets of stocks beyond the benchmark Nifty 50 through index funds and ETFs.
First Published: Sept 22, 2026 4:20 PM IST