NFO Alert: Zerodha Fund House announces launch of Zerodha Life Cycle Fund 2031

Zerodha Fund House today announced the launch of the Zerodha Life Cycle Fund 2031, extending its target-date fund series to a five-year maturity horizon. The launch follows the June 2026 debut of the Zerodha Life Cycle Fund 2036 and Zerodha Life Cycle Fund 2041, which introduced target-date investing to Indian investors.

The new fund offer or NFO of Zerodha Life Cycle Fund 2031 is open for subscription and will close on September 10.

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Like its predecessors, the Zerodha Life Cycle Fund 2031 is structured around a specific maturity year, called the target year, and invests across a mix of asset classes including equity, debt and commodities like gold and silver, according to a press release by the fund house.

The portfolio follows a pre-defined asset allocation that shifts systematically from a growth-oriented (higher risk) allocation in the early years to a more conservative allocation (lower risk) as the target year approaches. The shift happens automatically, without requiring any action from the investor.

With the addition of the 2031 fund, the Zerodha Life Cycle Fund series now spans three maturity variants - 2031 (5 years), 2036 (10 years) and 2041 (15 years) giving investors a shorter-horizon option built around the same rule-based glide path structure as the original two funds.

Additional schemes with varying maturity years are planned over time, so investors at every life stage have a fund built around their timeline, the fund house further said.

"Investing well isn't just about picking the right asset class but also about knowing how much to allocate where, staying invested through market ups and downs, and shifting gears as your goal draws near. The Zerodha Life Cycle Fund series handles this shift for you, so that investing stays simple,” said Vishal Jain, CEO of Zerodha Fund House.

On the equity side, the fund aims to track the Nifty LargeMidcap 250 index. For the debt exposure, it invests in Indian government securities (G-secs) across different durations. It also takes some commodities and arbitrage exposure.

"A lot of financial goals might not sit ten or fifteen years away. A dream car purchase, a milestone birthday trip, a saving kitty for a loan downpayment - these are closer, and they need an allocation that reflects that shorter runway. The 2031 fund is built for exactly that kind of timeline,” said Vaibhav Jalan, CBO of Zerodha Fund House.

The fund would be classified as equity for taxation purposes throughout its lifecycle, allowing investors to benefit from long-term capital gains tax treatment. There is no lock-in period; investors may exit at any time subject to applicable exit loads. The minimum investment amount is Rs 100.

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At maturity, investors have full flexibility over their investments. They may choose to withdraw, or remain invested as the fund may be merged with the nearest maturity Life Cycle fund in accordance with the regulations.

The fund is suitable for investors who are seeking capital appreciation aligned with a specific target year (2031), want investment in a dynamically managed portfolio of equity, debt, commodity and other instruments, where the asset allocation follows a pre-defined glide path that becomes more conservative as the target maturity date approaches.

The fund will be suitable for investors who want goal based investing designed for objectives with a target date of 2031.

The principal invested in the fund will be at high risk according to the riskometer of the fund.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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