Zerodha Nifty Smallcap 100 ETF
A simple ETF to take smallcap exposure in your portfolio.
NFO Starts
Aug 25
NFO Ends
Sep 5
Risk
Very High
Min. Investment
₹1,000
Ideal for
About the fund
The Zerodha Nifty Smallcap 100 ETF is an exchange traded fund (ETF) that gives you access to invest in India’s 100 small-market capitalization companies (also known as small-caps), while diversifying across a wide range of sectors in the economy.
The Zerodha Nifty Smallcap 100 ETF is an exchange traded fund (ETF) that gives you access to invest in India’s 100 small-market capitalization companies (also known as small-caps), while diversifying across a wide range of sectors in the economy.
Smallcap companies are companies beyond the top 250 companies by market capitalization. As a segment, these companies are generally characterized by higher price volatility when compared to large and mid-cap stocks.
This ETF may be suitable for investors who only have a long-term investment horizon and willing to undertake high levels of risk, looking to complement their core portfolio with smallcap allocation.
You can start investing in the Zerodha Nifty Smallcap 100 ETF with as low as around ₹10 once listed, using your preferred stock brokers.
*Small-cap companies can be defined as the 100 small-market capitalization companies based on full market capitalization that are part of the Nifty 500 universe
Tax Implication
Investment period <= 1 year
Gains/profits are treated as short-term capital gains & taxed at 20% (plus 4% cess and surcharge, if any).
Investment period > 1 year
Gains/profits are treated as long-term capital gains and are tax-free upto ₹1.25 lakhs in a financial year. Gains above ₹1.25 Lakhs in a financial year are taxed at 12.5% (plus 4% cess and surcharge, if any).
Fund Manager
Kedar has an experience of 19 years in financial markets, across multiple roles at Aditya Birla Sunlife AMC Ltd (ABSLAMC), including fund management for passive products, where he managed 13 ETFs and Index Funds in equity & commodity. Kedar's belief in his own words is - "Passive investing uses the collective intelligence of the market instead of manually picking stocks and works for most investors."
Riskometer
Riskometer of the scheme
Riskometer of the scheme
Riskometer of the benchmark - Nifty Smallcap 100 Index TRI
This product is suitable for investors who are seeking*:
- Long term capital growth
- Investment in equity and equity related securities covered by Nifty Smallcap 100
Investors should understand that their principal will be at Very High Risk
Note - The product labelling assigned during the New Fund Offer (NFO) is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when actual investments are made.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Other Funds
Zerodha Nifty LargeMidcap 250 Index Fund
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund
Zerodha Nifty Midcap 150 ETF
Frequently Asked Questions
Fund Overview
The Zerodha Nifty Smallcap 100 ETF provides a simple way to add growth potential to your investment foundation. With this ETF you get exposure to performance of the small cap segment of the financial market. You can invest in this ETF if you have a long-term investment horizon with a high risk appetite.
During the New Fund Offer (NFO), you can invest a minimum of ₹1000 and in multiples of ₹100 thereafter. After the fund lists on the stock exchange, you can buy or sell any number of units (minimum one) through your stockbroker at live market prices, just like a stock. Large investors/Market Makers can invest/redeem directly with the mutual fund at applicable NAV on all business days.
Investment Philosophy
The Zerodha Nifty Smallcap 100 ETF invests primarily in equity and equity related instruments. Hence, it is a Very High Risk scheme. Investors should also expect a high level of volatility in this ETF.
Mode of Investing
During the NFO, the Zerodha Nifty Smallcap 100 ETF is available to invest from Coin by Zerodha and MyCAMS Online platform.
Cost and Tax Implications
Investors investing in the Zerodha Nifty Smallcap 100 ETF will be taxed only on the capital gains based on different time periods of investments:
- If the investment Period < 1 year:
- If the investment Period > 1 year:
Gains/profits are treated as short-term capital gains & taxed at 20% (plus 4% cess and surcharge, if any).
Gains/profits are treated as long-term capital gains and are tax-free upto ₹1.25 lakhs in a financial year. Gains above ₹1.25 Lakhs in a financial year are taxed at 12.5% (plus 4% cess and surcharge, if any).