Zerodha Nifty MidSmallcap400 50:50 Index Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Zerodha Nifty MidSmallcap400 50:50 Index Fund Direct Growth Plan has a NAV of ₹11.0882 as of 16 Sep 2026 and an AUM of ₹17 Cr. Its 1-year, 3-year and 5-year returns are 0%, 0% and 0% respectively, and the scheme is tagged as High Risk. Our view is that this is still a very early-stage index fund, so investors should read the return history alongside the benchmark behaviour and the portfolio mix rather than treat the short record as a mature pattern.

The fund sits in an index fund structure with a low expense ratio of 0.0% and a broad 41-holding portfolio. That mix can appeal to investors who want rule-based exposure and are comfortable with sharper fluctuations. Because the track record is short and the recent return path has been uneven, the fund is better viewed as a long-horizon allocation than as a short-term holding.

Quick facts

Particular	Details
NAV	₹11.0882 as of 16 Sep 2026
AUM	₹17 Cr
Expense Ratio	0.0%
Launch Date	09 Apr 2026
Min SIP	₹100
Risk Category	High Risk
Benchmark	Nifty 50
Fund Category	Index Funds
Exit Load	No exit load
Fund Managers	Kedarnath Mirajkar

The fund is managed by Kedarnath Mirajkar.

Source data date: as of 16 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-3.51%	-4.41%
3M	0.27%	-3.6%
1Y	Data not available	Data not available
3Y	Data not available	Data not available
5Y	Data not available	Data not available

The latest near-term pattern is better than the benchmark on both available windows, but it is still a weak absolute showing. Over 1 month, the fund fell less than the benchmark, and over 3 months it was slightly positive while the benchmark stayed negative. That tells us the portfolio has recently behaved a little more resiliently than the index it is being compared against, even though the gains are not strong enough to call the stretch convincing.

The short record also matters. The fund launched on 09 Apr 2026, so there is no meaningful 1-year, 3-year or 5-year trailing history yet. In practical terms, this means investors are looking at an early NAV path rather than a full cycle of performance. The available price movement suggests some recovery after weakness, but not a smooth compounding trend.

Compared with the benchmark, the fund has held up better in the available recent windows. That relative edge is useful, but it is not the same as a tested longer-term record. For an index strategy, the main question is whether the fund can keep tracking its intended exposure without large slippage; at this stage, the evidence is limited to a few months of movement.

Because the time line is so short, our reading is cautious. The recent numbers show some stability after a soft patch, but they do not yet establish a durable performance pattern.

Source data date: as of 16 Sep 2026

Should you BUY or HOLD Zerodha Nifty MidSmallcap400 50:50 Index?

A fund's past returns alone don't tell you whether you should buy it today or continue holding it.

The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.

Already holding Zerodha Nifty MidSmallcap400 50:50 Index? Thinking of investing now?

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Peer comparison

Fund	1Y return	3Y return	5Y return
Zerodha Nifty MidSmallcap400 50:50 Index Fund Direct Growth Plan	Data not available	Data not available	Data not available
ICICI Pru NASDAQ 100 Index Fund Direct Growth Plan	29.31%	30.01%	Data not available
Tata Nifty Capital Markets Index Fund Direct Growth Plan	21.45%	Data not available	Data not available
Motilal Oswal Nifty Capital Market Index Fund Direct Growth Plan	21.13%	Data not available	Data not available
Motilal Oswal Nifty MidSmall Financial Services Index Fund Direct Growth Plan	20.68%	Data not available	Data not available
ICICI Pru Nifty Pharma Index Fund Direct Growth Plan	17.57%	18.84%	Data not available

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

The current fund does not yet have a completed 1-year record, so the peer table is more useful as a context check than as a strict comparison. On the available 1-year figures, the fund is behind the other named peers that have reported returns, while the stronger peer numbers also show that some thematic index strategies have moved much more sharply over the same horizon. The 3-year and 5-year cells are largely unavailable across the peer set, so the short and long views do not tell the same story here.

That makes the comparison mainly a check on early behaviour. The current fund has looked steadier than the benchmark in the available recent windows, but the peer table shows that some other funds have already built meaningful trailing records. For this scheme, the main takeaway is that it is still too early to use peer history as a mature long-term reference point.

Source data date: as of 16 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
BSE Ltd	Finance	1.63%
The Federal Bank Limited	Bank	1.06%
Multi Commodity Exchange of India Limited	Finance	1.05%
Laurus Labs Limited	Healthcare	0.9%
One 97 Communications Limited	IT	0.88%
Hero Motocorp Limited	Automobile & Ancillaries	0.86%
Sona BLW Precision Forgings Limited	Automobile & Ancillaries	0.85%
Coforge Limited	IT	0.84%
Indusind Bank Limited	Bank	0.81%
Bharat Heavy Electricals Limited	Capital Goods	0.78%

The top 10 holdings account for approximately 9.66% of the portfolio.

To see all holdings, visit the Zerodha Nifty MidSmallcap400 50:50 Index Fund Direct Growth Plan page

The largest holding, BSE Ltd, carries a weight of 1.63%, which is modest in absolute terms. The next few positions are close behind, and the decline from the first holding to the tenth is fairly gradual, moving from 1.63% to 0.78%. That suggests the portfolio is not built around one dominant stock.

The displayed holdings also point to a fairly even spread across names rather than sharp concentration. With the top 10 positions accounting for 9.66% and 41 holdings disclosed in total, the visible slice of the portfolio looks diversified across several industries such as finance, banking, healthcare, IT and capital goods. This structure may reduce dependence on a single company outcome.

At the same time, the fund still has a long tail beyond the top 10, so the full portfolio can behave differently from the visible holdings alone. For an index strategy, that broad base is often the point: no single holding is likely to dominate the experience, and movements across many smaller positions may contribute more meaningfully over time.

Source data date: as of 16 Sep 2026

Who should invest

This fund suits investors who can tolerate High Risk and are comfortable with a fresh index strategy that has not yet built a full multi-year track record. The short history means it is better assessed as a long-horizon holding, not as a near-term return play. The recent behaviour has been somewhat better than the benchmark in the available windows, but that does not remove the uncertainty that comes with a newly launched scheme.

The portfolio is spread across 41 holdings, which may appeal to investors looking for broad-based equity exposure rather than a narrow single-theme bet. The trade-off is that you accept market volatility and an incomplete performance history in exchange for a low-cost, rules-based structure.

Tax and exit load

Holding period	Tax rate	Description
Units held less than 1 year	20%	Short-term capital gains tax
Units held more than 1 year	12.5%	Long-term capital gains tax

Exit load: No exit load.

Source data date: as of 16 Sep 2026

Frequently asked questions

What is the current NAV of Zerodha Nifty MidSmallcap400 50:50 Index Fund Direct Growth Plan?
The current NAV is ₹11.0882 as of 16 Sep 2026.

What are the fund’s recent returns?
The available recent returns are -3.51% for 1 month and 0.27% for 3 months. The fund launched in April 2026, so longer trailing figures are not yet available.

How has it performed versus the benchmark?
It has been slightly better than the benchmark in the available recent periods. The fund lost less over 1 month and was positive over 3 months while the benchmark stayed negative.

How does it compare with peer funds on available return data?
Its available short-term return is below the reported 1-year returns of the named peer funds. Several peers also show much stronger long-term trailing records where those figures are available.

What is the minimum SIP amount?
The minimum SIP amount is ₹100.

Who manages the fund and what is the exit load?
The fund is managed by Kedarnath Mirajkar. The exit load is nil, so there is no exit load on redemption.

Bottom line

This is a newly launched index fund with a short record, so its recent behaviour matters more than any long-term story for now. The available windows show it has been slightly steadier than the benchmark, while peer comparisons mostly highlight that this scheme still lacks a full trailing history. The risk label is High Risk, and the portfolio is spread across 41 holdings with no single position dominating. That combination may suit investors who want a low-cost, rules-based equity allocation and can stay invested through early-stage volatility.

Published on 17 September 2026 at 3:49 PM IST

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RIA disclosure

Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.