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.
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 ādaily 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.
@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 .
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.
@VishalJain please run some basic if conditions in your email sender before sending marketing emails. Iām already investing in Zerodha elss large midcap
Hello @VishalJain Hereās My Opinion on Zerodha Fund House.
The products are basic, unappealing and donāt have the right to win factor.
IMHO: Quant, ICICI, Nippon, PPFAS offer the most top-shelf funds out there and they have been generating alpha for decades consistently.
People I know personally, have been sitting on 10x, 17x, 25x and even 32x on funds like ICICI, Nippon, Quant and thatās on MFs alone.
Iām a pretty savvy investor and I can balance and build my own ETF like Portfolio, exactly mimicking the indices and everything. Why would I then need to pay some 0.50% to you? Seems pointless right?
Would I invest in Zerodha Fund House with the current offerings? Absolutely not.
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 whoās starting to invest today?
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
@VishalJain I donāt 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 āmarket 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.
