Zerodha Fund House launches Zerodha Nifty Next 100 ETF, extends passive lineup beyond the Nifty 50
Zerodha Fund House today announced the launch of the Zerodha Nifty Next 100 ETF, an open-ended scheme replicating the Nifty Next 100 Index. The scheme will be benchmarked against the Nifty Next 100 Index TRI and will adopt a passive investment strategy, endeavouring to invest in stocks in proportion to their weightage in the index, subject to tracking error.
Once listed, units of the Zerodha Nifty Next 100 ETF can be bought and sold on the stock exchange(s) during market hours through a demat account, offering investors the same ease of access as trading a stock.
About the Index:
The Nifty Next 100 Index comprises a mix of large-cap companies with the potential to become mega large caps, and midcap companies with the potential to graduate into the large-cap segment, spanning sectors such as Financial Services, Capital Goods, Healthcare, and Power etc.
It occupies the segment that includes the smaller large caps and bigger midcaps, capturing businesses that are natural candidates for future entry into the Nifty 50 as the index composition evolves. The 100 stocks of the Nifty Next 100 Index are a combination of the universe of stocks forming part of the Nifty Next 50 Index and the top 50 stocks of the Nifty Midcap 150 Index.
- The largest sectors in the Nifty Next 100 Index are Financial Services (22.59%), Capital Goods (14.35%) and Healthcare (9.57%).
- Since inception on Oct 1st 2010 till Aug 31st 2026, the Nifty Next 100 TRI has delivered a CAGR of 13.34%, with five-year and one-year CAGRs of 14.97% and 13.49% respectively.
- The Index aims to reflect the performance of the large and midcap companies listed at NSE with approx. 65% weight allocated to large caps and 35% to midcaps.
Speaking on the launch of the Zerodha Nifty Next 100 ETF -
Vishal Jain, CEO, Zerodha Fund House, said, "The Nifty 50 brings together the largest companies in the country, but a lot of India's growth story sits in the tier just after it. The Zerodha Nifty Next 100 ETF gives investors a way to extend their allocation into that layer, with the same index-driven, rule-based approach we've built our other funds around."
Vaibhav Jalan, CBO, Zerodha Fund House said, "Investors who've built a Nifty 50 allocation often ask what comes next. The Nifty Next 100 ETF is a straightforward answer to that: it's not exposure to a theme or a sector, it's exposure to the next set of companies that may become tomorrow's market leaders"
The New Fund Offer (NFO) for the Zerodha Nifty Next 100 ETF opened on 21st September 2026 and is live on platforms such as Coin by Zerodha and MyCAMS. The NFO closes on 5th October 2026.
Above views are of the author and not of the website kindly read disclaimer
