Zerodha wants to double down on passive mutual funds after building 4 lakh investor base in 1 year

Zerodha Mutual Fund, which has recently completed one year, announced its plans to double down on passive space with more ETFs and passive funds after building a current unique investor base of 4 lakh, CEO Vishal Jain said in a blog post.

The fund house recently completed its one year of operations as India’s direct-only AMC with the main focus on building fundamental, versatile products across asset classes that seamlessly fit into any investor’s portfolio.

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Zerodha Mutual Fund launched its LargeMidcap Index Funds last year, expanded into ETFs and FoFs and launched funds in debt, gold, and equity segments with the total number of schemes at 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 Rs 4,000 crore as of date, a testament to the trust and confidence of our investors,” said Jain.

The fund house currently has more than 4 lakh unique investors spread across more than 15,000 pincodes in the country and 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,” said Vishal Jain.

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Commenting on the key focus areas along with doubling down on passive funds, Jain said the fund house wants to double down on investor education and create a seamless and intuitive experience for investors making every transaction simple and free.

Zerodha’s founder and CEO, Nithin Kamath posted on social media platform X, mentioning that the good thing about being passive is it aligns the incentives for both customers and us.

“Our AUM has grown significantly, all without us actively pushing anything. The good thing about being passive-only is that it aligns the incentives for both the customers and us. For the customers, it means access to good, low-cost products, and for us, it eliminates the risks that have recently made headlines,” Kamath posted.