Zerodha's new Index Fund lets you invest in India's top 30 companies

The low-cost passive fund offers investors an easy entry into India's blue-chip stocks through the BSE Sensex.

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Zerodha Fund House has launched the Zerodha BSE SENSEX Index Fund, an open-ended equity scheme that replicates and tracks the performance of the BSE Sensex Index. The New Fund Offer (NFO) opens today and will remain available until November 3, 2025.

 

Units will be allotted on November 6, 2025, and the scheme will reopen for ongoing subscriptions from November 10, 2025.

 

The fund will invest in equity and equity-related securities that mirror the composition of the BSE Sensex, India’s oldest and most recognized stock market benchmark. The Sensex represents 30 of the largest and most financially stable companies listed on the Bombay Stock Exchange (BSE), covering sectors such as banking, energy, IT, manufacturing, and consumer goods.

 

"“The BSE Sensex reflects the performance of India’s leading companies across key sectors. The journey of this index spans several pivotal moments — from the dawn of the internet to the rise of India’s digital economy. With this fund, we’re offering investors a simple way to invest in India’s leading companies and build a diversified portfolio," said Vishal Jain, CEO of Zerodha Fund House.

 

The fund is designed for long-term investors who want to participate in the growth of India’s largest and most liquid companies without the need to pick individual stocks.

 

Why Index Funds Are Gaining Popularity

 

Index funds have grown rapidly among retail investors for their low-cost structure, transparency, and broad diversification.

Unlike actively managed funds, which aim to outperform the market, index funds replicate a benchmark — reducing fund management costs and minimizing human bias.

 

Financial planners say Sensex-based index funds are suitable for first-time investors looking for exposure to India’s large-cap segment with lower expense ratios and market-mirroring returns over the long term.

 

Zerodha BSE SENSEX Index Fund – NFO Details

 

• Scheme Type: Open-ended equity scheme replicating/tracking the BSE SENSEX Index
• Benchmark: BSE SENSEX Total Return Index (TRI)
• NFO Period: October 20, 2025 – November 3, 2025
• Allotment Date: November 6, 2025
• Reopens for Ongoing Subscription: November 10, 2025
• Investment Objective: To generate returns that closely correspond to the performance of the BSE SENSEX, subject to tracking errors
• Portfolio Composition: Equity and equity-related securities of the 30 largest and most financially sound companies on the BSE
• Minimum Investment: As per platform guidelines
• Fund House: Zerodha Fund House (a joint venture between Zerodha Broking Ltd and Smallcase Technologies Pvt Ltd)
• Fund Manager: Zerodha Fund House team
• Where to Invest: Available on all major mutual fund platforms and at zerodhafundhouse.com