{"id":363361,"date":"2023-10-30T17:50:34","date_gmt":"2023-10-30T12:20:34","guid":{"rendered":"https:\/\/zerodha.com\/z-connect\/?p=363361"},"modified":"2024-02-02T12:29:42","modified_gmt":"2024-02-02T06:59:42","slug":"introducing-zerodha-fund-house","status":"publish","type":"post","link":"https:\/\/zerodha.com\/z-connect\/general\/introducing-zerodha-fund-house","title":{"rendered":"Introducing Zerodha Fund House"},"content":{"rendered":"

One of the biggest problems for the Indian markets is the shallow participation. We have about 8 crore demat account holders and 4 crore unique mutual fund investors. If you consider the duplication between both, the total number of investors is maybe about 9-10 crores. <\/span><\/p>\n

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If India has to grow, our markets have to expand. While we\u2019ve built easy-to-use platforms for people to invest in equities and mutual funds, we also realized maybe they need easy-to-understand products. This is the only way to get the next<\/span> 10 million<\/span><\/a> Indians to invest, so we decided to apply for a mutual fund license. We are building the AMC as a joint venture with smallcase. They have 6+ years of experience building investment products, and building this with them and leveraging that expertise was a no-brainer. The <\/span>AMC<\/span><\/a> will be led by Vishal Jain, who has over 20 years of experience designing passive products. He was part of teams that launched India\u2019s first equity, debt, and commodity ETFs.<\/span><\/p>\n

It took us a while, but we are super excited to announce that the first new fund offerings of Zerodha Fund House are now <\/span>open for investment on Coin<\/span><\/a> and all the other direct mutual fund platforms. The two funds we have launched are an open ended index fund and a <\/span>equity linked savings scheme (ELSS)<\/span> or tax saver fund that tracks the Nifty LargeMidcap 250 Index. The index has exposure to both large and mid caps and is an ideal fit for core equity exposure in all portfolios.\u00a0<\/span><\/p>\n

About the index<\/strong><\/h3>\n
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  1. The Nifty LargeMidcap 250 index covers about 84% of the full market capitalization and around 87% of the free-float market capitalization of all listed NSE stocks.<\/span><\/li>\n
  2. The index has 50-50 weights for large caps and mid caps. The weights are reset quarterly. The large cap universe is the Nifty 100 index, and the mid cap universe is the Nifty Midcap 150 index.<\/span><\/li>\n
  3. The index is broadly diversified across 20 sectors.\u00a0<\/span><\/li>\n<\/ol>\n

    Most AMCs can only offer one passive or active equity-linked savings scheme (ELSS) fund. Many offer active ELSS funds because they can charge higher. This makes us one of the few AMCs to have a low-cost index ELSS fund.<\/p>\n

    Here\u2019s Vishal talking about the philosophy of Zerodha Fund House and about the new funds<\/span><\/p>\n