Zerodha Fund House's new fund offer to be launched in 6-8 weeks

Zerodha Fund House's first new fund offer (NFO) is expected to go live in the next six to eight weeks.

The company is in the process of completing all formalities to launch its first set of products, said Vishal Jain, CEO of Zerodha Fund House.

Zerodha's asset management company (AMC), under the name Zerodha Fund House, is a digital-first fund house that will operate as a separate entity, sponsored by Zerodha Broking Ltd.

The Securities Exchange Board of India has given Zerodha the final approval to set up the AMC, Zerodho's CEO Nithin Kamath had posted on X (erstwhile Twitter) recently.

The AMC will establish an independent platform to house its products and solutions. The offerings will also be accessible through prominent digital and exchange platforms, including Zerodha and Smallcase.

Zerodha's AMC, which will be focused on index funds, is being launched in partnership with Amazon-backed wealth management firm smallcase, with equity traded funds (ETFs).

Both Zerodha and smallcase have secured a stake in the AMC entity through a joint venture.

The primary focus of Zerodha's AMC is to serve internet-savvy consumers and help them start their investment journey with simple and straightforward products, said Jain, who had earlier worked at Nippon India Mutual Fund.

In addition to direct-to-consumer workflows, the company also plans to reach a wider audience by partnering with leading platforms and advisors with technology solutions.

Zerodha's AMC sees a significant opportunity in helping more people access the capital market through passive products, such as ETFs, which are simple, transparent and affordable.

While differentiation may be challenging for some exposures, the AMC intends to enhance the investing experience by expanding its catalogue with funds that are relevant for investors and their portfolios. It also plans to leverage technology, focus on investor education, and raise awareness to attract and retain investors.

To encourage wider participation, Zerodha Fund House also intends to set low minimum ticket sizes of around Rs 100 for most funds, with the exact amount depending on the product.