ZERODHA NIFTY SHORT DURATION G-SEC INDEX FUND
Secure Government-Backed Returns with Minimal Risk.
NFO TIMELINE
| Parameter | Details |
|---|---|
| NFO Start Date | 26th December 2025 |
| NFO End Date | 09th January 2026 |
| Allotment Date | 14th January 2026 |
| Minimum Investment | ₹100 |
| Additional Investment | Multiples of ₹1 |
| NFO Price | ₹1,000.00 per unit |
| Entry Load | NIL |
| Exit Load | NIL |
SCHEME INFORMATION
| Parameter | Details |
|---|---|
| Scheme Name | Zerodha Nifty Short Duration G-Sec Index Fund |
| Scheme Code | ZERO/O/O/DIN/25/12/0017 |
| Category | Debt Fund - Short Duration Index Fund |
| Scheme Type | Open-ended, Index-tracking Fund |
| Benchmark Index | Nifty Short Duration G-Sec Index - Total Return Index |
| Benchmark Risk Level | Low to Moderate Risk |
| Fund Size | ₹9,989+ Crores (Rank #50 in India) |
| NAV | ₹1,000.00 (as of 26 Dec 2025) |
About Zerodha Nifty Short Duration G-Sec Index Fund
The Zerodha Nifty Short Duration G-Sec Index Fund is an open-ended index fund that provides investors with a passive investment solution to gain exposure to Government of India securities with a maturity of 1 to 3 years. As a passively managed fund, it tracks the Nifty Short Duration G-Sec Index, holding Government securities in the same proportion as the index.
What Makes This Fund Unique?
- Passive Index Tracking - Low cost, transparent, and efficient
- Government-Backed Securities - 100% sovereign guarantee with minimal credit risk
- Short Duration Focus - 1-3 year maturity reduces interest rate volatility
- Zero Load Structure - No entry or exit load charged
- High Liquidity - Can be redeemed instantly with T+1 settlement
- Predictable Income - Regular coupon payments from Government of India
INVESTMENT OBJECTIVE
The Zerodha Nifty Short Duration G-Sec Index Fund aims to provide returns that, before expenses, align with the total returns of the securities constituting the Nifty Short Duration G-Sec Index, subject to tracking errors.
Product Suitability
- Investors seeking short-duration income with safety
- Conservative individuals wanting government-backed exposure
- Retirees needing predictable, stable cash flows
- Risk-averse investors seeking minimal credit risk
- Those with 1-3 year investment horizon
- Portfolio builders seeking debt diversification
WHY INVEST IN SHORT DURATION G-SECS NOW?
Key Investment Advantages
- Sovereign Guarantee - Backed by Government of India with negligible default risk
- Minimal Credit Risk - Safest debt instrument in the domestic market
- Predictable Cash Flows - Fixed coupon payments on schedule
- Short Duration Benefits - 1-3 year maturity limits interest rate volatility
- Liquidity - Active secondary market trading ensures easy exit
- Portfolio Stabilizer - Low correlation with equities reduces portfolio volatility
- Income Certainty - Government ensures coupon and principal payments
- Tax Efficiency - Potential tax planning benefits vs corporate bonds
Current Market Opportunity
- Interest Rate Environment - Favorable yields on short-duration securities
- Safety Premium - Government backing provides unmatched safety
- Attractive Valuations - G-Secs offering reasonable returns with safety
- Inflation Protection - Fixed income ladder with government backing
- Redemption Flexibility - Easy to exit if interest rate environment changes
RISK ASSESSMENT & RISKOMETER
Risk Category: LOW TO MODERATE RISK
This fund is classified as Low to Moderate Risk due to:
Credit Risk Component: Relatively Low (Class A)
- Backed by Government of India sovereign guarantee
- Virtually zero default risk
- Safest domestic borrower
- Guaranteed coupon and principal payments
Interest Rate Risk Component: Moderate (Class II)
- 1-3 year duration provides moderate rate sensitivity
- Shorter maturity reduces volatility vs long-duration bonds
- Price fluctuations occur with market rate changes
- Manageable through index structure
Risk Factors
- Interest Rate Risk - Bond prices fall if market rates rise
- Duration Risk - 1-3 year bonds affected by rate environment changes
- Market Risk - Secondary market pricing fluctuations
- Reinvestment Risk - Coupon reinvestment at uncertain rates
- Opportunity Cost - Lower returns than equities during rallies
Volatility Profile
- Volatility Level: Low to Moderate
- Price Fluctuations: Moderate (compared to long-duration bonds or equities)
- Downside Protection: Strong (sovereign guarantee)
- Upside Potential: Limited but predictable
FREQUENTLY ASKED QUESTIONS
Q1: What is an ETF and how is it different from a regular mutual fund?
A: An ETF (Exchange Traded Fund) is a scheme that trades on stock exchanges like individual stocks. Unlike regular mutual funds, ETFs offer:
- Intraday trading capability
- Lower expense ratios
- Greater transparency in holdings
- Flexibility to buy/sell during market hours
Q2: Why should I choose an index-tracking fund like this?
A: Index funds offer:
- Lower Costs - Minimal management fees
- Transparency - Holdings mirror the index
- Consistency - Predictable performance tied to index
- Simplicity - Easy to understand and monitor
Q3: Can I exit my investment before 5 years?
A: Yes! Being a listed ETF on NSE, you can:
- Sell units on stock exchange anytime during trading hours
- Redeem directly with fund (if liquidity criteria are met)
- No exit load charged
- Receive proceeds in T+1 (next working day)
Q4: What is the investment horizon recommended?
A: Minimum 5 years. However, being an equity fund, it suits investors willing to stay invested through market cycles and has the financial capacity to absorb short-term volatility.
Q5: How is NAV calculated and disclosed?
A: NAV (Net Asset Value) is calculated daily and disclosed by 11:00 PM on business days through:
- www.growwmf.in/nav
- www.amfiindia.com
- Official stock exchange platforms
Q6: Are there any hidden charges?
A: No hidden charges. Transparency disclosure includes:
- Entry Load: NIL
- Exit Load: NIL
- Expense Ratio: Disclosed in fact sheets
- Transaction charges: As applicable per SEBI norms