Ask me anything about Zerodha Fund House

AMA (Ask Me Anything)
64

Hey Vishal, portfolio of the fund is sent twice in the same day for March 2024, as monthly and half yearly disclosures. Should ideally be sent only once like other fund houses do.

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@VishalJain How do I determine what is the right value of the LIQUIDCASE ETF at any given instance? In case of a stock, the price is what buyer is willing to pay but LIQUIDCASE ETF is backed by interest bearing securities that have predictable interest.

Since LIQUIDCASE ETF is traded on exchange, a seller might opt to sell at 2%, 5%, or 10% premium over the right value. If I don’t know how to calculate the right value of LIQUIDCASE ETF, I am concerned I might overpay. In case of LIQUIDBEES, we always know that ₹ 1,000 is the right value. Dividends are in the form of extra units and does not affect the price.

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Hi Priyank, you can get the Indicative NAV (iNAV) from our website which you can keep track of…

The same is also available on the NSE website. My suggestion would be to always place a limit order around the iNAV.

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67

Noted…thanks for highlighting

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70

Hey, thanks a lot for the suggestions on the debt index side and have noted them. On the equity side we will do some basic ETFs and you will hear about them soon.

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@VishalJain please launch aggressive and conservative passive hybrid index funds. No amc is offering it .

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You can allocate your own portfolio as per your needs to any equity index fund and debt index fund.

73

Hey Anil, at this point passive hybrid products are not allowed. Discussions on this are on at various levels.

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Zerodha Fund House missing from AMFI Mutual Funds Sahi hai site Locate Mutual Fund Distributor | Invest Online in Mutual Funds

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75

@VishalJain Are you saying passive hybrid products are not allowed by SEBI ?

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@VishalJain @ShubhS9 hai how gold case nav is calculated - because pergram 22k 6100+ 24k is 7000+
but your goldcase NAV is 11+ how its calculated

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GOLDCASE is an Exchange-Traded Fund (ETF) that displays its Net Asset Value (NAV), akin to Mutual Funds.

The NAV is calculated as follows: (Total value of assets of the fund minus expenses) divided by the number of units.

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78

The allotment price of Zerodha Gold ETF was ₹10 per unit during NFO which is approximately 0.00158 grams for Gold 995 Purity. The NAV has reached 11.72 on account of price appreciation in gold. To make it more accessible to retail investors we have priced it at ₹10. Hope this clarifies.

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79

thanks sir - now understand

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@VishalJain

sir please bring GOLD LINK Mutual fund - if you bring this is the first kind of mutual fund

Gold Link Mutual Fund Means
50 % Gold ETF ( backed by physical gold )
25 % Gold Shopper stock ( Titan, kalyan jeweler)
15% Gold Loan provider stock (Muthoot , manapuram)
10% Gold Mining Company Stock (Deccan Gold Mining , Nmdc )

please consider

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81

Hey, @TradeB2B noted.
However, as of now, this is not allowed as per the regulations.

82

Wait what doesn’t all NFOs start at 10 and MFs allow fractional units and it has nothing to do with making it accessible to retail investors.

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NFO for ETF is different from MF. ETF’s dont’t allow fractional units (unless credited as dividend eg LIQUIDBEES).

For ETF I think it’s the fund house wish to select the starting NAV as GOLDCASE was 10 Rs and LIQUIDCASE starting nav was 100 Rs.

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So this might be a silly question to ask but I’ll still do it when investors invest x amt in GOLDCASE what happens to that money then? Will Zerodhafund House have to buy Physical Gold with that amount?

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