Ask me anything about Zerodha Fund House

Yes, every fund house can have only 1 ELSS scheme as per regulation.

The logic to choose the Nifty LargeMidcap 250 was to provide investors with a diversified product that represents a larger part of the Indian economy. The 250 stocks of the Nifty LargeMidcap 250 Index cover approximately 84% of the full market capitalization, around 87% of the free-float market capitalization and approximately 69% of the total liquidity of all traded equity stocks on the NSE.

The Index is a 50:50 split between LargeCaps and Midcaps and therefore is a good mix between stability from the largecaps and growth from the midcaps.

The main cause of tracking error is usually the expense ratio and difference in the holdings of the portfolio vs the benchmark.

Hope this helps.

For a 3 year+ period, is it not better to atleast dip more into mid and small caps?

One of the thing Which everyone noticing is you are building super simple products.

What all other strategies you are thinking to ensure Mutual fund is seen as preferred vehicle of long term investment by aam aadami of India say families who depends on unpredictable daily wages?

e.g. The geography, where I stay in . small co-operative financial institutes have been able to penetrate this segment to certain extent ā€¦ they call it is ā€œdaily pigmy depositsā€. The agent collects everyday small amount ranging from 10 rupees to 1000 rupees and dutifully deposit in account.

Are you building any models which will you to tap any such untapped segments?

Imagine the greater good funhouse will be able to do by changing lives of millions of Indians with long term saving via passive products route, if you are able to reach them.

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@VishalJain I need a fund with 50% Nifty 50 and 50% G-Secs rebalanced yearly . I think this will give stable returns that can beat inflation . I dont see any fund inline with this .

Why donā€™t you manually do that instead of depending on a fund?

If you want do invest 4k SIP, do 2k in nifty 50 index fund and 2k in Gild fund.

This way you can pick best of both categories instead of depending on 1 fund house for both

@tallerballer rebalancing involves taxation . If we have fund we can skip taxation part .

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Invest in dynamic asset allocation. You wonā€™t find any fund with exact 50:50. Unless you are doing on your own

@tallerballer can you name one dynamic asset allocation fund that uses nifty 50 and g-secs

You want the rebalancing without the tax implications. So suggested dynamic asset allocation funds. There are no funds that stick to just nifty 50 and gsec AFAIK.

Hey Rajendra, thanks for your wishes and suggestions. We strongly believe that simple products can be instrumental in enabling more people to access the capital markets. Hence, we are focusing on the power of indexing to launch simple mutual funds & ETFs to form the core building blocks of every portfolio. We are beginning with broad-based products across multiple asset classes and extend to more solutions & use-cases thereafter.

At present nearly 35% of our investors are from small towns and as we move ahead and expand our distribution reach through various digital partnerships we hope to enable more people to start using mutual fund products as a preferred product to fulfil their investment needs.

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LIQUIDCASE bought yesterday is showing as T1 Holding, can we sell Today (on T+1 day)?

Like Buy Today and Sell Tomorrow

In this case, also 80% will be credited and used for other trades or MTM Loss

You can sell it today.

No, as per regulations, credit from selling T1 holdings isnā€™t available on the same day. It is available from the next day. Explained here: Discontinuation of credit on sale of T1 holdings w.e.f 19th June 2023

@VishalJain please run some basic if conditions in your email sender before sending marketing emails. Iā€™m already investing in Zerodha elss large midcap

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Notedā€¦ thanks

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No opinion in ZFH but the returns that you are talking about out of curiosity what category of funds are u speaking of? Is it mid or smallcaps?
Over what horizon is such returns accumulated?
What difference would it make for someone whoā€™s starting to invest today?

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Hey Souvik, thanks so much for reaching out. We are still at the beginning of our journey and hope to help more Indians become savvy investors like you to help them build a better financial future for themselves. I hope somewhere in the future we are able to have a product that makes sense to you. In the meantime, i wish you all the very best in your investing journey and am happy to hear any suggestions you may have for ZFH. Regards

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You got owned bro :joy::joy:

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Asking a fund house that has ā€œpassiveā€ in its motto why they have passive funds. Seems pointless, right? But Iā€™m not savvy enough to be sure.

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@VishalJain I donā€™t know if this is an interesting idea as a product but what are your thoughts on an index fund that tracks both the Nifty200 Momentum 30 and Nifty100 Low volatility 30 indices? I have been exploring the Nifty strategy indices lately and the 10 year rolling returns for the historical data of both Nifty200 Momentum30 and the Nifty100 Low volatility 30 seem to be consistently better than Nifty 50.

I was personally thinking about starting a 50:50 investment into a momentum and a low volatily index fund. To me, this 50:50 splits seems to be the right mix between tracking momentum while maintaining a ā€œmarket risk adjusted hedgeā€ through the low volatility index.
The problem is that the regular rebalancing that will be required to keep the weights at 50:50 on an annual basis is not tax efficient for individual investors and will probably eat away the excess returns that this strategy generates over Nifty 50. This is where an index fund or ETF could help.

Needless to say, all strategy indices are backward looking and may fail to outperform in the future.

Hey Neeraj, any strategy index will be prone to outperformance/underperformance with the market just like any other active scheme. However, one of the benefits of using any index is that its relatively easier to understand the risk-return characteristics of the strategy. And therefore do have a look at how your proposed strategy will affect the risk-return dynamics of your portfolio and proceed.

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