Ask me anything about Zerodha Fund House

Hello everyone,

I am Vishal Jain, the CEO of Zerodha Fund House. We started the fund house with a vision to make investing easy and simple for everyone. Our initial products reflect our commitment to simplifying investing.

Recently we crossed 500 Cr AUM and 1L Investors. Let me take this opportunity to thank all the investors for the trust placed in us.

If we have to bring in the next 10 crore investors to the capital markets then we believe that it can only be done by offering simple and transparent products that are easy to understand.

If you have any questions, post them below, and I’ll answer as many as I can. Feel free to ask me anything about the fund house and our product offerings!

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Any REAL plans wrt Startegy Indices in the NEAR future (< 2 years)
https://www.nseindia.com/products-services/indices-strategy

Hey @VijayNair,
As of now, we have no plans to launch strategy indices. The focus is to provide investors with the basic building blocks across multiple asset classes and extend to more solutions & use-cases thereafter. We strongly believe that simple products can be instrumental in enabling more people to access the capital markets through mutual funds.

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@VishalJain hai , please bring REIT and Invit Fund Or ETf - all india based investment

please be a first fund house on this product

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when you are going to start growth liquid fund (without ETF, direct investment in the fund)

Hey @Ram_Poo,
We are still evaluating various options on the debt side and will get back as and when our plans fructify.

Hey @TradeB2B,
Thanks for the feedback. However, as I understand, regulations as of now permits investments in REIT & InvIT up to 10% in a particular scheme.

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All in one auto rebalance fund would be good.
For example -
35% nifty largemidcap 250
35% SP500
30% liquid instruments

And this gets rebalanced every 3 months. Something like this would be nice to have.

ANy plans to bring Equity Index ETFs? Like u guys have largemid cap 250 Index Fund any plans to bring Largemid cap 250 ETS?

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+1 For this recommendation/feedback

Hey @emrys11,
Your suggestion is noted.

Hey @Chetan_Nahata,
Yes, our next set of products will be equity ETFs. We are still in the process of finalizing the same.

With last year’s changes in Debt MF taxation rules, international equity ETFs / MFs are now getting taxed at marginal rate which can be as high as 30-40%. This can serve as a large deterrent to people who want to diversify beyond Indian Equity markets. Any tax efficient simple product which focuses on US indexes (Nasdaq 100) with say 35% Indian equity mix (LargeMidcap 250) will provide investors indexation benefits along with diversification and would be really helpful.

In any case, I am pretty sure that given Zerodha Fund House’s focus on low cost simple products, it would rapidly scale up its AUM and be a serious competitor to established players. Some larger fund houses have already started taking note and are launching products similar to Zerodha Fund House. Please keep up the good work.

Hi,

Do you guys have plans to bring more ETFs? Can you give an idea about what kind of ETFs we can expect?

Hi Vishal,

I have few questions.

  1. What is the liquidity level of LIQUIDCASE ETF? What if there are no buyers for the ETFs ? What would ZFH do in such cases if one wants to sell ?

  2. Is there going to be a new fund that tracks GOI bonds specifically?

  3. Is there going to be a target maturity fund like the Bharat bond?

  4. Is there going to be a fund similar to that of TQQQ for Indian markets based out of derivatives ?

Thank you.

Hey @PK123,
Your suggestion has been noted and thank you so much for trusting us.

Hey @tradernoob,
Our next set of products will be equity ETFs. We are still in the process of finalizing the same.

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Hi @VishalJain
I am looking for two kinds of FoF built on top of passive index based ETFs

  1. Currently Debt instruments are unattractive for long term due to tax implications.
    Looking for completely passive that is, Fixed allocation hybrid with with maximum permitted debt instruments.

  2. Currently there is no completely passive multi-asset with international exposer FoF. Looking for such transparent FoF which will reduce sequence of returns risk in long term, Something similar to vanguard target funds… I understand gliding like target fund may be difficult to to asymmetric tax structure but still such fund offer the predictable passive product .

Hey @slow,

  1. The Fund has appointed market makers and endeavours to provide ample liquidity on every given day which is also visible in the order book. The possibility of no buyers or sellers seems rare in my opinion, possibly if there is a general market shutdown.

  2. We are still evaluating various options on the debt side and will get back on this.

  3. As mentioned earlier, we are yet to crystalise our plans for debt products.

  4. Regulations in India do not permit mutual fund schemes to be launched on derivative products as of now.

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Hey @RajendraPatil,
Your suggestion has been noted.

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