One year of Zerodha Fund House

As the year winds down, I want to take a moment to reflect on everything we’ve achieved at Zerodha Fund House in 2024. It’s been a year of exciting milestones, bold steps, and laying the groundwork for what’s next.

Why we started

Having spent over 20 years in the industry, one thing that stood out to me is how much work still needs to be done to truly expand market participation. Despite all the progress we’ve made, penetration is still limited and this realization has shaped my belief that we must simplify investing to bring more people into the fold.

Hence, we started the fund house a year ago with a single-minded focus to help more Indians access the capital markets with a strong belief that our products need to be simple, transparent, and affordable for investors. Index-based products truly exhibit these qualities and fast forward 1 year:

This is where we are

Funds offered

This year, our focus has been on building fundamental, versatile products across asset classes that seamlessly fit into any investor’s portfolio. After the successful launch of our LargeMidcap Index Funds last year, we expanded our offerings further into ETFs & FoFs:

  1. Debt Segment: We introduced India’s first Growth-NAV-based Liquid ETF, LIQUIDCASE, offering investors a low-risk, innovative option for short-term cash management.

  2. Gold Exposure: To cater to those seeking exposure to gold, we launched a Gold ETF – GOLDCASE and a Gold Fund of Funds, providing flexible and cost-effective ways to invest in this timeless asset.

  3. Equity Segment: On the equity front, we launched two ETFs – TOP100CASE and MID150CASE, enabling investors to target specific market segments with precision.

With these launches, our total number of schemes has grown to seven. Currently, we have different ETFs that one can use to build an effective asset allocation across all asset classes. We are also thrilled to share that our total Assets Under Management (AUM) have crossed ₹4,000 crore as on date, a testament to the trust and confidence of our investors.

 

Investors base

We have more than 4 Lakh unique investors, spread across more than 15000 pincodes in the country. Most of the investors are in the age group of 28-36. I am happy that more than half of them come from smaller towns* (Beyond the top 30 cities) which signifies a pivotal shift in wealth creation, extending beyond urban areas into the hinterlands.

What’s next

There are 3 key focus areas that we want to work further on:

• Doubling down on passive: We believe there is a lot to be done in the passive space in India. You can expect more ETFs and passive funds that let you take exposure to certain asset classes and build a long-term portfolio.
• Getting closer to the investor: Our priority is to create a seamless and intuitive experience, making every transaction simple and stress-free. Leveraging technology, we aim to deepen our connection with investors and better cater to their needs.
• Bridging the Gap: Investor education is something that we want to double down on. Smaller towns (B-30 cities) will continue to be a key focus as we work to improve accessibility and financial literacy.

The team behind it all

None of this would have been possible without the amazing team at Zerodha Fund House. From the engineers building intuitive products to the industry veterans running the core functionality of the AMC, everyone has played a part.

To our investors

And finally, a huge thank you to all our investors. Your trust inspires us to do better every single day.

As we step into 2025, we’re more excited than ever to keep innovating to bring you smarter, simpler ways to invest. Here’s to an even bigger and better year ahead!

Views expressed in this post are solely my own and done in personal capacity and do not necessarily reflect the opinions of any other individuals or organizations.

Mutual fund investments are subject to market risks, read all scheme related documents carefully