Is it a rule or just the practice followed?
My bad MFs follow it or many be a rule too. I am not much accross ETFs and fractional ETFs are not possible unlike MF Units.
Zerodha already has bought gold (lets assume total qty is X). They divided this into total shares Y. Y is a constant, if someone is buying shares its either via NFO or via secondary sale. If zerodha decides to issue new shares then they will have to first buy gold and then proceed with the distribution
I noticed that ZFH has filed for an āEquities and Gold FOFā (40% largecap, 30% midcap and 30% Gold). This seems like a superb one fund portfolio solution for lazy investors like me 
.
Any plans of introducing a similary structured FOF with Debt ETF instead of Gold?
Hey @ndeshm Have you checked Nifty Alpha Low Volatility Index? Isnāt Nifty 200 momentum 30 + Nifty Alpha Low Volatility 30 these combination works better? Any reason for picking Nifty 100 Low Vol 30?
Hey Vaibhav, the solutions category through FOFs would be a focus area for ZFH and this is just a first. We will look at many more such unique combinations across various assets as we move ahead.
Hi @vimox.shah, you could also do that. My reason for not picking the alpha factor is that Jensenās alpha can give weird results for stocks with low beta. A low beta stock can have a high alpha but still give less returns than the index. And based on NSEās methodology document it is not clear to me how they take care of this issue.
The momentum and low volatility factors donāt have such numerical traps (that I am aware of).
Any MFs in pipeline for total market ? Like invest in India and for India
FYI Groww Mutual Fund has fund tracking total market index.
I would not suggest it since weightage of anything non-nifty in that index is irrelevant . Better to half your SIP into nifty and small cap index manually
Hi Zerodha fund house team ,
Can you please describe about why only nifty 100 and midcap150 etf and not an MF fof?
My worry is etf tends to be illiquid and sometimes asking prices are high and so mistakes tend to happen frequently.
Thank you
Any chances of expense ratios becoming cheaper?
Currently, they are almost the same as competition.
Hiā¦ our decision on expense ratios depends on many factors such as the market segment which we operate in, business dynamics & sustainability of the business, service levels we would like investors to experience and therefore the constant investments that need to be made in technology and people over the years and many other factors. We have priced all our products competitively and wherever possible such as the Zerodha Liquid ETF and Zerodha Gold ETF, we are among the lowest. In others, as we scale and based on business dynamics, we will keep passing on the benefits of economies of scale to investors.
Hey Vishal, had a doubt regarding FoFs.
Right now, many ETFs are trading at a premium.
When in invest in a mutual fund FoF (I mean a fund that only invests in the ETF, not directly into the stocks like an index fund), does the AMC create new units of the ETF at actual NAV for us, and then give it to the mutual fund. Or does it buy in the market at a premium like we would have?
I am asking this since I read that institutions go to AMC directly for ETF units and donāt always buy in market due to price differences and liquidity issues. Is it true?
Hey Vivek, as the NFO is still currently on and are yet to take a call as it depends on many factors. But be rest assured, it will be cost effective for investors.
Hey Vishal, this would generally depend on the amount of subscription/redemption. If its above 25 crores, then yes, the FOF/any investor can directly create /redeem directly with the AMC. If less than 25 crores, then the FOF/any investor would need to trade in the market.
Hey Henry, every structure whether close-ended, open-ended or an ETF has its pros and cons. We had launched an index fund and ELSS on the Nifty LargeMidcap 250 Index which is an open-ended fund structure and a combination and large and midcap companies as defined by the index. We are now launching the Nifty100 and Midcap 150 ETFs to complete the basic building blocks due to which we will have ETFs across Equity, Debt and Gold. This will also enable us to build solutions on those ETFs as we go ahead.
Thank you Vishal for your response. Are you going to launch a FoF based off of this ETFs?