Zerodha’s asset management (AMC) subsidiary, Zerodha Fund House, claims to have moved past INR 4,000 Cr total asset under management (AUM) with over 4 Lakh investors across its funds
The company claims that Zerodha Fund House had only INR 231.35 Cr AUM at the start of the year as against the INR 4,287.24 Cr as of January 8
Over the past year, the AMC has primarily built mutual funds across three major segments, LargeMidcap Index Funds, Exchange Traded Funds (ETFs) and Fund of funds (FoFs)
About a year into their operation, Zerodha’s asset management (AMC) subsidiary, Zerodha
Fund House, claims to have moved past INR 4,000 Cr total asset under management (AUM) with over 4 Lakh investors across its funds.
In a post on X, Zerodha’s founder and CEO Nithin Kamath said that in 2024, which was the first year for Zerodha AMC to act as India’s direct-only AMC, the AUM growth came without the company “actively pushing anything.”
For context, the company claims that Zerodha Fund House had only INR 231.35 Cr AUM at the start of the year as against the INR 4,287.24 Cr as of January 8.
In a detailed blog post recounting Zerodha Fund House’s growth trajectory in 2024, its CEO and COO Vishal Jain said that the fund house was launched a year ago with “a single-minded focus to help more Indians access the capital markets with a strong belief that our products need to be simple, transparent, and affordable for investors”.
Over the past year, the AMC has primarily built mutual funds across three major segments, LargeMidcap Index Funds, Exchange Traded Funds (ETFs) and Fund of funds (FoFs).
Besides, Zerodha also forayed into the debt segment with “India’s first Growth-NAV-based Liquid ETF” named LIQUIDCASE, Gold ETF, Gold FoFs and launched two equity ETFs (TOP100CASE and MID150CASE).
As of now, the company has a total number of seven schemes under its belt to which over 4 Lakh investors from more than 15,000 pincodes in India, Jain claimed. He further said that more than half of the investors come from beyond the top 30 cities of the country.
Moving forward, the AMC is looking to double down on its play in the passive funds. For context, passive funds are a type of mutual fund or exchange-traded fund (ETF) that replicate the performance of a specific market index. Jain said that Zerodha is currently planning on launching more ETFs and passive funds.
“The good thing about being passive-only is that it aligns the incentives for both 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,” Kamath said in his post on X.
Moving forward, Zerodha Fund House will also be prioritising its bid to build better connections with its investors and focus on investor education in smaller towns.
Pertinent to mention that after getting final regulatory approvals in August 2023, Zerodha AMC launched its maiden mutual funds in October 2023. Back then, Kamath had said that the move to venture into the space was largely led by consideration around increasing retail investor participation in Indian markets and building simple, easy-to-understand mutual funds.
Meanwhile, Zerodha’s bread and butter brokerage business continues to trail behind new incumbent Groww. At the end of December 2024, Zerodha had an active investor count of 81.2 Lakh on its platform as against 1.32 Cr investors on Groww.
On the financial front, Zerodha’s net profit surged 88.95% to INR 5,496.3 Cr in the financial year ending March 2024 (FY24) from INR 2,908.9 Cr in FY23. Its consolidated revenue also increased 37.16% to INR 9,372.1 Cr from INR 6,832.8 Cr in the previous fiscal.
