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Zerodha Fund House, one of the latest entrants in the mutual fund industry, has logged in an asset under management of ₹240 crore in two months of its launch.
One-of-its-kind passive fund house which accepts investment only through online platform has managed to attract investment from about one lakh investors of which 30 per cent were from smaller towns.
The Zerodha Nifty LargeMidcap 250 index fund has an asset of ₹202 crore and has one of the lowest expense ratio of 0.25 per cent with minimum investment of ₹100. The fund invests equally between the top 100 large companies and the next 150 mid-cap companies.
Similarly, the Zerodha ELSS Tax Saver Nifty LargeMidcap 250 index fund comes with three-year lock-in and investment of up to ₹1.50 lakh can be deducted from taxable income.
The NFO on third product Zerodha Nifty 1D Rate Liquid ETF with only growth option for the first time in India. In contrast to similar products currently available, the returns from Zerodha Liquid ETF will be taxed only when the ETF is sold.
Plans ahead
Going ahead, the fund house will launch large, mid and small cap ETFs besides debt passive funds and gold ETFs. It plans to have at least 5-6 products by March and take the basket of offerings to 10-15 products in next 2-3 quarter.
Vishal Jain, CEO, Zerodha Fund House said the core objective of the fund house will be to offer a simple product with lowest cost for investors to invest passively in the Indian equity market.
The fund house collected about ₹100 crore in two NFOs launched and they already have AUM of about ₹240 core, he said.
The first equity offer allows investors to diversify across various companies, sectors and market capitalizations, he added.
Zerodha Fund House plans to keep all offerings simple with only direct option and automate the entire investment process with little human intervention.
“There are huge untapped potential investors base in smaller cities. According to latest survey, about 85 crore consumers had used e-commerce services and 57 crore people have linked their PAN card with Aadhaar. They are our potential customers,” he said.
“We want to increase MF penetration through passive products which can help more people to start their investment journey,” said Jain
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