We said we’d keep it simple, did we actually do it?

A yearly update from Zerodha Fund House.

When we launched our first fund in October 2023, you invested on conviction alone since you didn’t have a track record to rely on. I wanted to write to you about what your trust in us has built and what it means for you going forward.

We now manage ~ ₹15,000 crore across 17 funds, out of which 10 of our funds have crossed an AUM of ₹100 crore. We have more than 11.5 lakh investors, who have trusted us with their money. This is a responsibility we value deeply, and it drives how we think about building and managing funds for our investor base.

Our product philosophy is built on three central pillars:

• Funds that act as building blocks. These are simple and transparent funds, the kind that could be used by any investor to start an investment journey or add to an existing portfolio
• Solutions built using those blocks that make investing easy or hands-off, not something you need to figure out on your own
• Make technology work for you to make investing more accessible – fewer steps, less friction, more people participating

What FY26 was about

Building blocks:

This past year, I feel we’ve largely focused on creating funds that act as building blocks. We launched 9 such schemes across equity, debt, and commodity, each providing a very targeted exposure to one or the other asset class. Overall, these building blocks have resonated really well and found a place in more than 80% of our investor portfolios.

Solutions:

On the solutions front, we launched a 4-in-1 passively managed Multi Asset FoF, with the core thought of helping you manage your asset allocation—across equity, debt, and gold—without having to worry about rebalancing, tax complications, or thinking about multiple investments. This fund directly gives you a basket of 4 ETFs across equity, debt, and commodity in a fund format so that you don’t have to worry about deciding your asset allocation.

For investors who prefer more control over their portfolio but want a structured alternative to picking individual ETFs, we offer prebuilt model portfolios. We currently have 16 Model portfolio options on our website, each providing a diversified basket of asset classes to simplify your market tracking and asset allocation.

Increased accessibility:

Using technology, we continue to make investing seamless and accessible i.e., we introduced a brand new way to invest, track, and manage your mutual fund portfolio in Zerodha Mutual Fund—an app-like journey, directly inside WhatsApp—no need to download any new app. We further enhanced this experience by launching an industry-First ETF Tracking on WhatsApp and an Instant Access Facility (IAF) for Overnight Funds on WhatsApp, which lets you withdraw money to your bank account within minutes. This way, your idle money stays invested and is still available the moment you need it.

To enhance accessibility further, we recently launched Daily Micro Savings on Coin by Zerodha, using our flagship index fund. With the idea of reducing the entry barrier and friction in investing, with Micro saving, investors can invest as little as ₹10 daily and start inculcating the habit of investing.

The impact of these initiatives is visible in the numbers—12% of our investors are investing in mutual funds for the first time. 60% of the total investors come from Tier 2, Tier 3 towns, and beyond.

What FY27 is about

We will keep building with the same philosophy, anchored around the same three pillars.

On the building blocks side, we will expand into more asset class exposures based on investor feedback. We’re also looking at ways to provide exposure to equities, international indices, and commodities.

On the solutions side, we recently launched an Equity-Oriented Hybrid Index Fund, a first-of-its-kind fund that offers rule-based exposure to both equity and debt in a defined 70:30 ratio, rebalanced monthly.

This is one fund that we always wanted to create.

We’ve also launched a MidSmall 400 50:50 Index Fund, offering investors a simple way to diversify into equities beyond large caps.

Looking ahead, we are keen on enabling goal-based investing, where the portfolio works around your life, not the other way around. Such solutions help you dynamically manage your asset allocation through a pre-defined glidepath, automatically shifting from assets with higher risk to lower risk as you move through different stages of life.

On the accessibility side, we are building tools that make the investment process simpler for everyday investors. Be it investing for your kids so that you build and track their portfolio in a segregated way or your ability to gift mutual funds to your friends and family, we want to simplify the journey of doing more with mutual funds.

These may seem like small things. But they’re the kind of small things that bring more people into the habit of investing, which is, ultimately, what Zerodha Fund House is here to do.

I would again like to thank each and every one of you for your trust in us. As always, you can reach me directly on TradingQnA or leave a comment below.

Disclaimer – Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this document is for general and reference purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of information/ data referred herein. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.

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