Zerodha AMC

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Zerodha AMC Private Limited is a SEBI-registered asset management company (AMC) that forms part of the Zerodha group of financial services companies. Headquartered in Bengaluru, Karnataka, it was granted in-principle approval by SEBI in 2021 and launched its first mutual fund schemes under the Zerodha Fund House brand in 2023. The AMC manages a range of passive and low-cost index-linked schemes distributed primarily through Zerodha’s existing brokerage and investment platforms.

Zerodha AMC represents the group’s most direct entry into the regulated fund management industry, extending the firm’s low-cost philosophy from brokerage to wealth management. The company is sponsored by Zerodha Broking Limited and operates under a trust structure with a separate board of trustees, in accordance with the SEBI (Mutual Funds) Regulations, 1996.

Regulatory framework

Asset management companies in India are governed by the SEBI (Mutual Funds) Regulations, 1996, as amended. To operate as an AMC, a company must:

  1. Obtain SEBI’s in-principle approval, which is conditional on meeting minimum net worth requirements and submitting a detailed business plan.
  2. Establish a mutual fund trust registered with SEBI.
  3. Appoint a board of trustees, a majority of whom are independent of the sponsor.
  4. Maintain a minimum net worth of fifty crore rupees on an ongoing basis.
  5. Obtain SEBI’s final approval and registration for each scheme launched.

All AMC investments are held in the name of the mutual fund trust and are segregated from the assets of the sponsor and the AMC itself. This structure protects investors in the event of a failure of the sponsoring entity.

SEBI requires AMCs to publish scheme information documents, key information memoranda, and factsheets for each active scheme, updated periodically.

In-principle approval and incorporation

Zerodha AMC received SEBI’s in-principle approval in 2021, having applied through the standard regulatory process. The approval was conditional on the company meeting the prescribed net worth requirement, demonstrating adequate technology and compliance infrastructure, and completing the trust registration.

The mutual fund trust was registered with SEBI following the in-principle approval. The AMC was subsequently incorporated as a private limited company. Ministry of Corporate Affairs filings record the company’s directors and shareholding structure, which reflects substantial ownership by the Zerodha founding family through the Zerodha Broking corporate structure.

Product range

Zerodha Fund House launched its first schemes in 2023. Consistent with the group’s broad philosophy of low-cost investing, the initial scheme range was concentrated in passive index funds tracking major Indian equity indices. As of 2026, the range includes:

  • Nifty 50 Index Fund, a passively managed fund tracking the NSE Nifty 50 index, targeting large-cap equity exposure at minimal cost.
  • Nifty Next 50 Index Fund, tracking the Nifty Next 50, providing exposure to the fifty largest companies outside the Nifty 50 constituents.
  • Nifty LargeMidcap 250 Index Fund, a broader-market passive fund.
  • Gilt fund, a debt fund investing in central government securities, suitable for conservative investors seeking sovereign credit quality.
  • Liquid fund, a short-duration debt fund for parking surplus funds.

The scheme range has been deliberately narrow compared with older AMCs that manage dozens of active equity, debt, and hybrid funds. This approach reflects both the regulatory cost of managing active funds (which require larger research teams) and the founders’ publicly stated preference for evidence-based, passive investment strategies.

Distribution

Unlike most AMCs that distribute schemes primarily through the regular plan route via mutual fund distributors, Zerodha AMC has emphasised the direct plan route through its own Coin platform on Zerodha Broking Limited’s ecosystem. Direct plan schemes have lower expense ratios because they exclude distributor commissions.

The AMC also distributes through the BSE StAR MF and NSE NMF platforms, making its schemes accessible to investors at other brokers and platforms. The Zerodha Coin platform provides a frictionless investment pathway for existing Zerodha brokerage account holders.

Expense ratios and cost philosophy

Zerodha AMC has positioned its funds as among the lowest-cost in their respective categories. Index fund total expense ratios are reported in line with or below the SEBI-mandated maximum TER for passive funds. SEBI regulations cap TERs for index funds and ETFs at lower levels than actively managed funds, and Zerodha AMC has historically charged at or near the regulatory floor.

The cost philosophy mirrors that of Zerodha Broking Limited in the brokerage segment and is positioned as a differentiator against AMCs with higher commission-embedded TERs in regular plans.

Assets under management

As a newly launched AMC, Zerodha Fund House’s aggregate assets under management (AUM) as of early 2026 were modest relative to incumbents such as SBI Mutual Fund, HDFC Mutual Fund, and ICICI Prudential Mutual Fund, which each manage AUM in the range of several lakh crore rupees. Building AUM takes time and is dependent on sustained scheme performance, brand recognition, and distributor network reach.

Zerodha’s competitive advantage lies in the captive distribution channel of its large brokerage client base. Approximately seven million active brokerage clients represent a substantial potential pool of mutual fund investors, and cross-selling through Coin has driven early AUM accumulation.

See also

References

  1. Securities and Exchange Board of India. “In-Principle Approval for Zerodha AMC.” SEBI order, 2021.
  2. Securities and Exchange Board of India. “SEBI (Mutual Funds) Regulations, 1996.” As amended through 2024.
  3. Ministry of Corporate Affairs. Company master data, Zerodha AMC Private Limited. MCA21 portal.
  4. Zerodha AMC. “Scheme Information Documents.” Zerodha Fund House website, 2023-2026.
  5. Securities and Exchange Board of India. “Total Expense Ratio, Passive Funds Circular.” SEBI, 2018, as amended.
  6. Association of Mutual Funds in India. “Monthly AUM data.” AMFI website, various dates 2023-2026.

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