Zerodha's Co-founder and Chief Executive Officer (CEO) Nithin Kamath revealed on Tuesday, January 14, that Zerodha Fund House crossed the ₹4,000 crore mark in asset under management (AUM) as of January 2025, in its first year as India's direct-only asset management company (AMC). Kamath took to the microblogging platform ‘X’ to share that this is their first year as India's direct-only AMC, and the AUMs have multiplied significantly.
“Our AUM has grown significantly, all without us actively pushing anything. The good thing about being passive-only is that it aligns the incentives for the customers and us. For the customers, it means access to good, low-cost products, and for us, it eliminates the risks that have recently made headlines,” said Kamath in a post on ‘X’. Vishal Jain, CEO of Zerodha Fund House, explained the AMC's one-year journey in a detailed blog post.
In his post, Jain reflected on Zerodha Fund House's milestones in the last one year. “As the year winds down, I want to take a moment to reflect on everything we’ve achieved at Zerodha Fund House in 2024. It’s been a year of exciting milestones, bold steps, and laying the groundwork for what’s next,” he said.
“Having spent over 20 years in the industry, one thing that stood out to me is how much work still needs to be done to truly expand market participation. Despite all the progress we’ve made, penetration is still limited, and this realization has shaped my belief that we must simplify investing to bring more people into the fold,” said Vishal Jain.
He added that they started the fund house a year ago with a single-minded focus on helping more Indians access the capital markets, believing that the products must be simple, transparent, and affordable for investors. Index-based products truly exhibit these qualities, and fast forward one year:
According to the CEO, this is where the AMC stands now-
Funds offered
This year, the focus has been on building fundamental, versatile products across asset classes that seamlessly fit into any investor’s portfolio. After the successful launch of our LargeMidcap Index Funds last year, the AMC expanded its offerings further into ETFs and FoFs:
1. Debt Segment: Zerodha Fund House introduced India’s first Growth-NAV-based Liquid ETF, LIQUIDCASE, offering investors a low-risk, innovative option for short-term cash management.
2. Gold Exposure: To cater to those seeking exposure to gold, the AMC launched a Gold ETF – GOLDCASE and a Gold Fund of Funds, providing flexible and cost-effective ways to invest “in this timeless asset”.
3. Equity Segment: On the equity front, Zerodha Fund House launched two ETFs, TOP100CASE and MID150CASE, which enable investors to target specific market segments with precision.
With these launches, the total number of schemes has grown to seven. Currently, the AMC has different ETFs that one can use to build an effective asset allocation across all asset classes. “We are also thrilled to share that our total AUM has crossed ₹4,000 crore as of date, a testament to the trust and confidence of our investors,” said CEO Vishal Jain.
Investors base
Zerodha Fund House has over four lakh unique investors spread across over 15000 pin codes in the country. Most of the investors are in the age group of 28-36. “I am happy that more than half of them come from smaller towns* (Beyond the top 30 cities), which signifies a pivotal shift in wealth creation, extending beyond urban areas into the hinterlands,” said Jain.
What’s next for Zerodha Fund House?
There are there key focus areas that the AMC wants to work further on:
Doubling down on passive: “We believe there is a lot to be done in the passive space in India. You can expect more ETFs and passive funds that let you take exposure to certain asset classes and build a long-term portfolio,” said Jain.
Getting closer to the investor: The priority is to create a seamless and intuitive experience, making every transaction simple and stress-free. “Leveraging technology, we aim to deepen our connection with investors and better cater to their needs,” said the CEO.
Bridging the Gap: The AMC seeks to double down on investor education. Smaller towns (B-30 cities) will continue to be a key focus as the AMC works to improve accessibility and financial literacy.
The team behind it all
Jain concluded that none of the work would have been possible without the amazing team at Zerodha Fund House. "From the engineers building intuitive products to the industry veterans running the core functionality of the AMC, everyone has played a part," he added.
He also expressed gratitude to investors. “A huge thank you to all our investors. Your trust inspires us to do better daily,” concluded Jain.
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