Happy to share that we’ve launched the first ETF in India tracking the Nifty Next 100 Index.
My dream has always been to bring the benefits of index investing to every Indian, one market segment at a time. This index fills a specific gap: the space where large-caps and midcaps actually overlap.
It combines the Nifty Next 50 with the top 50 of the Nifty Midcap 150 capturing the 100 companies ranked 51st to 150th on the NSE. Think of it as an index for India’s next generation market leaders. Through the Zerodha Nifty Next 100 ETF, you can now invest in this entire segment of emerging companies.
To learn about the index and get more info about the fund, check out this link.
Drop any questions about the index or ETF below - I’ll be around to answer as many as I can!
Nice concept. Can you help me understand index computation?
That 65-35 split between Largecap and Midcap fixed? Or it will move?
In other words is it one single index of 100 companies weighted on free float or there are two? First 50 accounting for 65% and next 50 accounting for 35%?
Historically, it is performing very average. I think we need someone who comes up with an equal weighted average of 33% distributed among Large, Mid and small cap with 30 to 50 companies in each leg. This way we get the cream of best companies from all 3 segments. This is like a trageted version of investing in Nifty 500 equal weight.
Also IIRC from the scheme document, you folks are putting a 1% exit load on exits less than 12 months old. This is very difficult to digest for a passive investing fund like this. Also in current market freefall, it is not possible to commit such long term investment fully when we dont know what scam or civil war will put everything at risk and we need to withdraw the money.
Oh sorry. I thought it is about their NFO (new fund offer). I actually got pushed a coin notification that they are releasing this same as a new Mutual fund and NFO is open for application. I thought the post is about the same. But you are right. this is about ETF of same and yeah, ETFs have no exit load.
The way I understand this ETF is that it will be nifty next 50 and stocks from 101 to 150. Total 100 stocks. We have many nifty next 50 etf with reasonable weightage, now with this combination of 100 stocks, the weightage will be low. Is it not too much of diversification, what does a weight of 1 percent of a super duper company in 101 to 150 actually do to the portfolio - almost nothing, Exactly like the tail of Nifty 50, the names are there for optics but weights are less than 1%. Would have liked the 51 to 150 stocks but among this top 30 or even 50 or something like this.
I wish if somebody comes out with an ETF with bestest 50 stock from any universe. I wouldn’t care whether they are large, mid, small or micro, till the time those 50 are bestest of it all
. I don’t think regulations permit this though.