Latest news with #ZerodhaMultiAssetPassiveFoF
Time of India
5 days ago
- Business
- Time of India
Zerodha's new mutual fund has 40% exposure in golds & bonds. CEO Vishal Jain explains why
Zerodha Fund House , which has just launched a new Multi Asset Passive FoF (fund of funds), comes with 25% allocation to gold ETF and 15% to G-Sec ETFs. The remaining 60% is divided equally between largecap and midcap ETFs. "The 25% allocation to Gold ETF and 15% to G-sec ETF—together making up 40%—might seem high at first, but it's intentional to help lower overall portfolio volatility. Gold acts as a hedge during market turbulence, and government securities provide stability and predictability," Vishal Jain, CEO, Zerodha Fund House, said. Edited excerpts from a chat: In the new Multi Asset Passive FoF, you've stitched together equity, debt, gold, and G-secs into one basket. What exactly is the rationale behind this fund? Which class of investors is it best suited for? The Zerodha Multi Asset Passive FoF is basically a simple solution to invest your money across different asset classes — equity, gold, and government securities — all bundled into one easy-to-manage fund. The idea is to make investing simpler by taking away the hassle of deciding how much to put where and constantly keeping an eye on your portfolio. This fund gives you a ready-made mix that's diversified, balanced, and transparent. You don't have to juggle multiple funds or worry about rebalancing. It's like having a well-diversified portfolio on autopilot. This fund is great for beginners who want a straightforward way to start investing without getting overwhelmed. It's also handy for those who already have investments across various assets but want to bring it all under one roof to keep things tidy. In short, if you're looking for a simple, low-maintenance way to grow your money steadily over time with a mix of asset classes, this fund fits the bill perfectly. Multi-asset funds have been popular in the last few months given the sharp returns seen in gold. Any downturn in the gold cycle can impact returns. How do you deal with that? Well, different asset classes perform well at different points in time, and it's not easy to predict which one will do well going forward. Our approach with the Zerodha Multi Asset Passive FoF is not to time the market or react to the short-term performance of any single asset class, including gold. The objective is to provide a balanced portfolio with better risk-adjusted returns over the long run, not to chase the returns of a particular cycle. Tell us the rationale behind having 30% in Large Cap ETF, 30% Mid Cap ETF, 25% in Gold ETF and 15% in G-sec ETF. How do you justify 40% allocation in gold and government securities? Isn't that too high even for a moderate risk profile investor? The 30% allocation each to Large Cap and Mid Cap ETFs reflects the focus on long-term growth through equities, capturing both the stability of established companies and the higher growth potential of mid-sized firms. The 25% allocation to Gold ETF and 15% to G-sec ETF—together making up 40%—might seem high at first, but it's intentional to help lower overall portfolio volatility. Gold acts as a hedge during market turbulence, and government securities provide stability and predictability. This mix aims to strike the right balance: enough equity exposure for growth, combined with a strong dose of safer assets to manage risk. It's designed especially for investors who want steady wealth creation without facing the roller-coaster swings that a 100% equity portfolio can bring. What made you take equal exposure in largecaps and midcaps in the fund? We chose to give equal exposure to large-caps and mid-caps because together, they cover around 80-85% of the Indian equity market. This way, the fund offers broad and meaningful participation in the market. The equal split is a thoughtful balance—large-caps bring stability and steady returns since they are well-established companies, while mid-caps offer the potential for higher growth as they're often in a phase of expansion. Zerodha Fund House has seen impressive growth but competition is heating up amid the entry of newer players and most of them seem to be targeting the same passive fund space. Where do you think the moat lies in the passive fund management business? What will set you apart from your competitors? We see more competition as a positive—it means the market is growing and more Indians are getting access to better investment options, which is exactly what we want to see and have set out to achieve. We strongly believe that the future of investing is all about making the experience as simple and seamless as possible. That's why we've built intuitive solutions like our WhatsApp investment journey, developed entirely in-house, to make investing easy and accessible for everyone. We think this retail-first, tech-first approach will be a key differentiator for us that would help empower more people to start financial journeys with confidence. As passive funds are becoming popular we are also noticing a flood of ETF NFOs on every possible theme entering the market. How do you see this trend evolving and whether it is becoming a problem for investors? The rise of thematic and factor-based ETFs is a natural development as the passive investing space matures and investors look for more specific, targeted opportunities. These funds give you the chance to get exposure to particular sectors or investment strategies, which can be exciting and provide diversification beyond broad-market bets. That said, the performance of these niche ETFs tends to be cyclical and harder to predict. So, they might not be the best fit for everyone's core portfolio. Instead, it's usually smarter to keep them as a smaller, 'satellite' portion of your overall investments. That way, you can explore these specialized opportunities without putting your long-term financial goals at risk. What's your outlook on the product pipeline at a fund house level as well as industry level? Are we likely to see more thematic or factor-based ETFs in India, or will the focus remain on broad-based indices? From the start, our focus has been on offering basic 'building blocks' across equity, commodity, and debt segments, and then moving towards more solution-oriented products. The Zerodha Multi Asset Passive FOF is the first step towards introducing investors to simple solutioning and we will look at introducing more solutions going ahead besides expanding our offerings on the equity and debt side. Looking at the broader industry, there's been a strong surge in passive investing over the last few years and it's encouraging to see the adoption growing rapidly in India. We do expect more thematic and factor-based products to be launched as part of this innovation wave. So, while the industry will likely continue to innovate with more thematic and factor-based ETFs, the fundamental, long-term adoption will likely remain towards simple, broad-based passive funds that form the core of an investor's portfolio.
Time of India
29-07-2025
- Business
- Time of India
Zerodha Fund House launches passive multi-asset fund of funds
The minimum amount for application is ₹100 and in multiples of 100 during the NFO, making it easy and accessible for investors. (AI image) Bangalore: Zerodha Fund House has launched its Zerodha Multi Asset Passive FoF, an open ended fund of fund scheme that will invest in units of equity funds, debt schemes, index funds and commodity ETFs. This multi-asset fund is a 4-in-1 fund that invests across equities, fixed income, gold and silver. It is a simple way for investors to begin their long-term investing journey, without juggling between the asset classes on their own. The fund will invest close to 30% in large cap ETFs that hold top 100 index stocks. Another 30% will go into mid-cap ETFs that track the Mid 150 index, 25% will be allocated to gold ETFs and 15% in ETFs that invest in government securities. This diversified portfolio is aimed at giving stable returns to investors. It particularly suits first-time investors. 'The Zerodha Multi Asset Passive FOF is a good starting point for those investors seeking to diversify through a simple ready-made portfolio in a single investment,' said Vishal Jain, CEO, Zerodha Fund House. The minimum amount for application is ₹100 and in multiples of 100 during the NFO, making it easy and accessible for investors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like My Brows Look Fuller Looking Now [See Results] NULASTIN Learn More Undo The fund manager will alter the portfolio through periodic internal rebalancing. But, as in all mutual funds, these adjustments will not have any tax implications for the investor. Tax liability is only incurred when an investor redeems the fund units. 'This new fund takes the guesswork out of investing, offering diversification and easy access to multiple asset classes. It's designed to be a no-brainer solution for anyone looking for a simple way to achieve their asset allocation goals,' said Vaibhav Jalan, CBO, Zerodha Fund House. Experts say that in the current volatile environment — where equity markets are volatile and bond yields are receding — a portfolio combining these asset classes with commodities like gold can deliver superior risk adjusted returns. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
29-07-2025
- Business
- Business Standard
4-in-1 Investment: Zerodha's New FoF offers gold, equity, G-Secs in 1 fund
In a move that makes smart investing simpler for everyone, Zerodha Fund House has launched a new offering: Zerodha Multi Asset Passive Fund of Fund (FoF) — a diversified, low-cost fund designed for long-term investors looking for exposure across asset classes without the hassle of managing them individually. What is it? The newly launched Zerodha Multi Asset Passive FoF is a 4-in-1 portfolio that combines: 30% in Equity Large Cap ETFs – tracking India's top 100 companies. 30% in Mid Cap ETFs – capturing fast-growing mid-sized businesses. 25% in Gold ETFs – providing a hedge during equity market volatility. 15% in Government Securities ETFs (G-Secs) – for portfolio stability. This fund aims to follow a balanced approach, taking exposure of close to 30% in Large Cap ETF - following top 100 index which consists of companies that are generally considered the market leaders of their respective sectors, 30% Mid Cap ETF - following mid 150 index which gives exposure to companies with relatively higher growth potential, 25% in Gold ETF - tracking gold which acts as a hedge against equity market uncertainty, 15% in G-sec ETF - investing in government securities with an aim to provide further stability to the portfolio. Why this matters: According to Vishal Jain, CEO, Zerodha Fund House, this fund is ideal for investors looking for a 'ready-made, diversified investment' that requires no active decision-making on asset allocation. With automatic internal rebalancing, investors don't need to shuffle between asset classes themselves. Tax-efficient & accessible One of the biggest advantages of this fund is its tax efficiency — since it rebalances internally, investors only pay capital gains tax when they redeem, not every time the fund reallocates. With a low entry barrier of ₹100, the fund is both affordable and accessible, especially for first-time investors or those seeking a low-maintenance investment vehicle. 'This new fund takes the guesswork out of investing... a no-brainer solution for anyone looking for a simple way to achieve their asset allocation goals,' added Vaibhav Jalan, CBO, Zerodha Fund House. For whom? This fund is best suited for: Zerodha's Multi Asset Passive FoF makes it easier than ever to diversify investments across equities, gold, and bonds, without worrying about frequent adjustments or tax implications.
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Business Standard
28-07-2025
- Business
- Business Standard
NFO Alert! Zerodha MF launches Multi Asset Passive FoF: Should you invest?
Zerodha Multi Asset Passive FoF: Zerodha Fund House has launched Zerodha Multi Asset Passive FoF, an open-ended fund of fund scheme investing in units of equity, debt index funds/ETFs and commodity ETFs. The new fund offer (NFO) of the scheme is currently open for subscription and will close on August 8, 2025. According to the scheme information document (SID), the investment objective of the scheme is to provide diversified exposure across multiple asset classes-equity, debt, and commodities, through a passive investment approach. By blending asset classes with low correlation, this scheme seeks to offer better risk-adjusted returns while reducing overall portfolio volatility. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme will be benchmarked against 60 per cent Nifty 200 TRI, 15 per cent CRISIL 10-year Gilt Index, and 25 per cent Domestic prices of Physical Gold. Kedarnath Mirajkar will be the designated fund manager for the scheme. During the NFO, investors can invest a minimum of ₹100 and in multiples of ₹100 thereafter. On a continuous basis, investors can invest under the Scheme during the ongoing offer period with a minimum investment of ₹100 and in multiples of any amount thereafter. Zerodha Multi Asset Passive FoF: Who should invest? According to the SID, the product is suitable for investors seeking long-term wealth creation and diversified exposure by investing across multiple asset classes such as equity, debt index funds/ETS, and commodity ETFs. 'The Zerodha Multi Asset Passive FOF is a good starting point for those investors seeking to diversify through a simple, ready-made portfolio in a single investment', said Vishal Jain, chief executive officer at Zerodha Fund House. According to Vaibhav Jalan, chief business officer at Zerodha Fund House, this new fund takes the guesswork out of investing, offering diversification and easy access to multiple asset classes. "It is designed to be a no-brainer solution for anyone looking for a simple way to achieve their asset allocation goals,' he said. The principal invested in the scheme will be at Very High Risk, as per the risk-o-meter. However, investors should consult their financial advisors if in doubt whether the product is suitable for them.
Time of India
25-07-2025
- Business
- Time of India
NFO Alert: Zerodha Mutual Fund launches multi-asset passive FoF
Zerodha Mutual Fund has announced the launch of Zerodha Multi Asset Passive FoF , an open-ended fund of fund scheme investing in units of Equity, Debt Index Funds/ ETFs, and Commodity ETFs. The new fund offer, or NFO of the fund, is open for subscription and will close on August 8. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment of units under NFO. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science Healthcare Data Science Others Digital Marketing others healthcare CXO MCA Degree Product Management Leadership Project Management Technology Management Public Policy Design Thinking Operations Management Artificial Intelligence Cybersecurity Data Analytics PGDM Finance MBA Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Also Read | Mutual fund houses launch over 100 passive funds in 2025. Will Sebi's new rules shift the trend? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Birla Evara 3 and 4 BHK from ₹ 1.75 Crore* Birla Estates Learn More The investment objective of the scheme is to provide diversified exposure across multiple asset classes—equity, debt, and commodities—through a passive investment approach. By blending asset classes with low correlation, this scheme seeks to offer better risk-adjusted returns while reducing overall portfolio volatility. The fund will be benchmarked against 60% Niy 200 TRI + 15% CRISIL 10 year Gilt Index + 25% Domestic prices of Physical Gold and will be managed by Kedarnath Mirajkar. The fund will offer only direct plans and only growth options. The exit load is nil. Live Events During the new fund offer (NFO), the minimum investment is Rs 100 and in multiples of Rs 100 thereafter. The minimum application amount for monthly SIP is Rs 100 with one minimum installment. The fund will allocate 50-70% in domestic equity ETFs/Index funds, 10-20% in domestic debt ETFs/Index funds, 20-30% in commodity ETFs, and 0-5% in debt securities and money market instruments. Also Read | This Rs 40,000 crore large & midcap fund multiplies lumpsum investment of Rs 1 lakh by 15 times in 15 years This passive fund has shared nearly 40 funds as the underlying funds. The cumulative gross exposure through equity, debt, commodity based mutual fund schemes and and such other securities/assets as may be permitted by SEBI from time to time should not exceed 100% of the net assets of the scheme. However, cash and cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure. The fund is suitable for investors who are seeking long term wealth creation and want diversified exposure by investing across multiple asset classes viz., Equity, Debt Index Funds/ ETFs and Commodity ETFs.
