Zerodha Mutual Fund files draft document with Sebi for two life cycle funds

Zerodha Mutual Fund has filed draft documents with Sebi for two life cycle funds- Zerodha Life Cycle Fund 2041 and Zerodha Life Cycle Fund 2036. These are open-ended funds with attributes of pre-defined maturity and glide path for goal-based investing.

Zerodha Life Cycle Fund 2041

Zerodha Life Cycle Fund 2041 will be an open-ended fund with attributes of pre-defined maturity and glide path for goal-based investing.


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The primary objective of the Zerodha Life Cycle Fund 2041 is to provide a goal-based investment solution that seeks to generate long-term capital appreciation by investing across various asset classes, i.e., Equity, Debt, InvITs, ETCDs, and Gold/Silver ETFs. The fund will follow a pre-determined maturity and a dynamic glide path strategy across the product lifespan, initially maintaining an aggressive stance and automatically transitioning toward a conservative, debt-heavy allocation to protect capital as the target date approaches

The performance of the fund will be benchmarked against 65% Nifty 200 TRI + 5% Domestic prices of Physical Gold + 5% Domestic prices of Physical Silver + 25% CRISIL 10-year Gilt Index, and will be managed by Kedarnath Mirajkar.

The minimum investment amount will be Rs 100 and any amount thereafter. Under normal circumstances, for years to maturity less than 10 years, the fund may take equity arbitrage exposure upto 50% in addition to the investment range specified for equity, while ensuring that total investment in equity and equity-related instruments remains within 65%- 75% in such schemes.

The fund will be suitable for investors who are seeking capital appreciation over the long term aligned with a specific target year (2041), 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 and want Goal-based investing designed for long-term objectives with a target date of 2041.

Zerodha Life Cycle Fund 2036
Zerodha Life Cycle Fund 2036 is an open-ended fund with attributes of pre-defined maturity and glide path for goal-based investing.

The primary objective of the Zerodha Life Cycle Fund 2036 is to provide a goal-based investment solution that seeks to generate long-term capital appreciation by investing across various asset classes, i.e., Equity, Debt, InvITs, ETCDs, Gold, and Silver ETFs. The fund follows a pre-determined maturity and a dynamic glide path strategy across the product lifespan, initially maintaining an aggressive stance and automatically transitioning toward a conservative, debt-heavy allocation to protect capital as the target date approaches.

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The performance will be benchmarked against 50% Nifty 200 TRI + 5% Domestic prices of Physical Gold + 5% Domestic prices of Physical Silver + 40% CRISIL 10 year Gilt Index and will be managed by Kedarnath Mirajkar.

Under normal circumstances, for years to maturity less than 10 years, the Fund may take equity arbitrage exposure upto 50% in addition to the investment range specified for equity, while ensuring that total investment in equity and equity-related instruments remains within 65%- 75% in such schemes.

The fund will be suitable for investors who are seeking capital appreciation over the long term aligned with a specific target year (2036), 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 and want Goal-based investing designed for long-term objectives with a target date of 2036.

Life cycle funds
On February 26, the market regulator Sebi announced the discontinuation of solution-oriented funds and the launch of a new category — life cycle funds. Life Cycle Fund will be following a glide path strategy based on investing across various asset classes, i.e., Equity, Debt, InvITs, ETCDs, Gold & Silver ETF.

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Mutual funds may launch Life Cycle Funds with a minimum tenure of five years and a maximum tenure of 30 years. Such a fund may be launched for tenures in multiples of 5 years, and a maximum of 6 funds by a mutual fund can be active for subscription at any given point in time.

Additionally, as each fund reaches less than one year to maturity, such a fund may be merged with the nearest maturity Life Cycle Fund with the consent of the unitholders.

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