Zerodha Fund House launches Zerodha BSE Top 10 Banks ETF, offering exposure to India’s largest banks through a single investment
Zerodha Fund House today announced the launch of the Zerodha BSE Top 10 Banks ETF, an open-ended exchange-traded fund that aims to track the performance of the BSE Top 10 Banks Index. The New Fund Offer (NFO) opens on October 12, 2026 and closes on October 26, 2026.
The BSE Top 10 Banks Index comprises the largest banks in the BSE 500, selected by free-float market capitalisation. It includes both private and public sector banks. The ETF gives investors exposure to this basket of banks through one investment, without the need to buy each stock individually.
Banks fund every part of the economy. Over the past few years, the rate at which they funded sectors such as Agriculture and Allied activities, industries, services and personal loans has been growing year on year.
India has 41 listed banks out of which the banks in this index account for about 89% of the free float market value of all the banks. This ETF holds those ten in line with their size, so the largest banks carry the biggest weights within the applicable limits. Several major banks part of this index are also priced below their 5 year average price to book value ratio. For an investor that means buying those banks at a lower price per rupee of book value than the average of the last 5 years.
Talking about the launch, Vishal Jain, CEO of Zerodha Fund House, said, "Banks support India’s economic growth by providing credit and enabling payments across the economy and investors might already have a view on the sector. The Zerodha BSE Top 10 Banks ETF gives them a transparent way to hold India’s largest baking stocks in a single fund.”
The ETF may be suitable for investors with a long-term investment horizon who wish to go beyond their core portfolio with a banking sector allocation.
During the NFO, investors can start with a minimum investment of Rs1,000 and in multiples of any Rs1,000 thereafter. The NFO will be available on Coin by Zerodha and MyCAMS. Once listed, units can be bought and sold during market hours through any stock broker using a demat account, with a minimum lot of 1 unit on the exchanges where the scheme is listed.
Investments held for up to one year are treated as short-term capital gains and taxed at 20% (plus 4% cess and surcharge, if any). Investments held for more than one year are treated as long-term capital gains, which are tax-free up to Rs1.25 lakh in a financial year and taxed at 12.5% (plus 4% cess and surcharge, if any) above that amount. Investors should consult their tax advisor in view of the individual nature of the tax implications.
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