Zerodha Fund House
Zerodha Fund House is the registered mutual fund brand (the name of the SEBI-registered mutual fund trust) operated by Zerodha AMC Private Limited , a member of the Zerodha group of financial services companies. Launched in 2023, Zerodha Fund House offers a range of passive index funds and debt schemes, distributed primarily through Zerodha’s own Coin platform and the major mutual fund exchange platforms.
The brand name distinguishes the investor-facing mutual fund trust from its asset management company. In Indian regulatory terminology, the AMC manages funds on behalf of the trust, and investors purchase units in the trust’s schemes. Zerodha Fund House is thus the name under which scheme information documents, key information memoranda, and unit confirmations are issued.
Background and launch
The decision to enter the mutual fund industry reflected Zerodha ’s strategic intent to extend beyond brokerage and capture a share of the growing systematic investment plan (SIP) and long-term wealth management market in India. The retail mutual fund industry in India has grown rapidly, with industry AUM crossing fifty lakh crore rupees by 2024 and SIP monthly inflows regularly exceeding twenty thousand crore rupees.
Zerodha had previously distributed third-party mutual fund schemes through its Coin platform (direct plans, zero commission). Operating as a distribution intermediary generated no fee income for Zerodha but provided client retention benefits. The establishment of Zerodha AMC and Zerodha Fund House enabled the group to capture management fees on AUM rather than merely distribution-channel loyalty.
SEBI granted in-principle approval to Zerodha AMC in 2021. After completing the regulatory requirements (trust registration, net worth maintenance, board and compliance appointments), the first schemes were filed as New Fund Offers (NFOs) in 2023.
Scheme range
Zerodha Fund House has maintained a focused scheme range rather than a broad catalogue. The schemes are classified by SEBI’s categorisation framework:
Equity schemes (passive)
Nifty 50 Index Fund: Tracks the NSE Nifty 50 total return index. Invests at least ninety-five per cent of assets in Nifty 50 constituent stocks in proportion to their index weight. Designed for investors seeking large-cap equity exposure at minimal cost. The total expense ratio is set at the lower end of SEBI’s permitted range for passive equity funds.
Nifty Next 50 Index Fund: Tracks the Nifty Next 50 index, comprising the fifty largest companies by market capitalisation outside the Nifty 50. These stocks occupy the upper mid-cap to lower large-cap range. The fund provides diversified equity exposure beyond the Nifty 50 core.
Nifty LargeMidcap 250 Index Fund: A broader passive fund tracking an index that combines the Nifty 100 large-cap universe with the Nifty Midcap 150, offering a single-fund solution covering 250 stocks across large and mid-cap segments.
Debt schemes
Gilt Fund: Invests exclusively in central government securities (gilts) across various maturities. Suitable for risk-averse investors seeking sovereign credit quality with no default risk. Duration risk exists depending on the maturity profile of the portfolio.
Liquid Fund: A very short-duration debt fund investing in money market instruments with maturity up to 91 days. Used for parking surplus funds with near-liquidity characteristics and marginally higher returns than savings deposits.
Distribution channels
Zerodha Fund House units are available through:
- Coin (Zerodha’s direct mutual fund platform): Accessible to all Zerodha Broking account holders. Direct plans only, at the lowest available expense ratio for each scheme.
- BSE StAR MF: The Bombay Stock Exchange’s mutual fund platform, through which any registered ARN holder or direct investor can transact.
- NSE NMF: The National Stock Exchange’s mutual fund network, accessible through empanelled intermediaries and direct portals.
- MFCentral / MF Utility: Platforms for direct plan investors without broker affiliations.
- Other brokers and fintech platforms: Schemes are accessible through third-party platforms such as Groww, Paytm Money, and ET Money, in compliance with the open-architecture distribution requirement.
Regulatory obligations
As a SEBI-registered mutual fund, Zerodha Fund House (through Zerodha AMC) must publish monthly portfolio disclosures, half-yearly and annual scheme reports, and daily NAVs through the Association of Mutual Funds in India (AMFI) portal. The board of trustees is responsible for investor protection oversight and is independent of the AMC management in respect of at least two-thirds of its members.
SEBI’s enhanced categorisation rules prevent AMCs from launching multiple schemes in the same category, ensuring that Zerodha Fund House cannot operate, for instance, two different large-cap active equity funds.
See also
- Zerodha AMC
- Zerodha
- Zerodha Broking Limited
- Securities and Exchange Board of India
- National Stock Exchange
References
- Zerodha AMC. “Scheme Information Document, Zerodha Nifty 50 Index Fund.” Zerodha Fund House, 2023.
- Securities and Exchange Board of India. “SEBI (Mutual Funds) Regulations, 1996.” As amended.
- Association of Mutual Funds in India. “AMFI AUM data.” AMFI website, 2024-2026.
- Securities and Exchange Board of India. “Categorisation and Rationalisation of Mutual Fund Schemes.” SEBI/HO/IMD/DF3/CIR/P/2017/114, 6 October 2017.
- Zerodha. “Coin platform, mutual fund investment.” Zerodha website, 2023.