Zerodha gets approval to launch mutual fund business: Nithin Kamath

Zerodha
1

This is interesting

Let us have this thread to discuss about what kind of mutual funds can possibly Zerodha launch?

I would put my money into game, if Zerodha launches low cost index funds based on following indices

  1. Nifty200 Momentum 30 Index : Currently only UTI offers fund on this index, not exactly low cost
  2. Nifty Alpha Low Volatility 30 Index : Currently only ICICI offers ETF on this index, which has volume issues

Back testing result shows that both indexes have outperformed nify50, nifty next 50 on comfortably on rolling returns basis for > 5 years investment.
Also combination will work complimentory to each other. In case of market crash Momentum index have larger drawdown, but alpha low vol should protect (to some extent) from capital erosion

Your views, counterviews? Educated guess?

2

In one of the interviews Nithin said that they are looking at launching target dated retirement funds…

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Oh! “Passive, simple, cheap index-traded funds" is what being said about Zerodha Strategy in some of the news articles

However, I agree. retirement focused funds can give long term stability. Innovative products are missing here.