Zerodha Nifty MidSmallcap400 50:50 Index Fund - Direct Plan - Growth Option

Zerodha Nifty MidSmallcap400 50:50 Index Fund - Direct Plan - Growth Option holds up reasonably well within the Index Funds category. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 65/100.

Cost: At 0.29%, the expense ratio is meaningfully cheaper — about 28% below the Index Funds category average of 0.4% (based on 908 comparable funds). Lower costs compound in your favour over long holding periods.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a strong Sharpe ratio of 2.91 — the fund has generated solid returns relative to the volatility it exposed investors to. Separately, annualised volatility of 15.75% is fairly typical for actively managed equity funds.

Who should invest: This fund is best suited to cost-conscious investors happy to simply match the market rather than try to beat it. The High risk rating means near-term volatility should be expected — this isn't a fund to check daily.