'We could have grown AUM faster...': Nithin Kamath on Zerodha Fund House crossing Rs 8,000 crore AUM in under two years

Zerodha Fund House, the asset management arm of discount brokerage Zerodha, has crossed the Rs 8,000 crore mark in assets under management (AUM) in less than two years since its launch. Founder and CEO Nithin Kamath revealed the milestone in a post on X, crediting strong retail participation for the AMC’s rapid growth.

According to Kamath, nearly all of the fund house’s AUM comes from individual investors, underscoring the trust retail investors have placed in Zerodha’s direct-only investment model. “What’s cool is that practically all of this AUM comes from individual investors,” Kamath wrote, while noting that the AMC has achieved this feat despite minimal marketing efforts and without relying on distributor commissions.

Growth despite competition

The journey to Rs 8,000 crore has been marked by steady inflows and consistent growth in investor participation. A chart shared by Kamath shows an uninterrupted upward trajectory in AUM since inception, even as the broader mutual fund industry has seen intensified competition. The market has witnessed the entry of new asset management companies (AMCs) and a surge in passive offerings from established players such as SBI Mutual Fund, Nippon India Mutual Fund, and newer entrants like Groww AMC.

Despite this increasingly crowded landscape, Zerodha Fund House has stuck to its core strategy of offering simple, cost-efficient products. The AMC has avoided distributor-led regular plans, instead prioritizing transparency and accessibility through direct plans only. Kamath emphasized that while the fund house could have grown faster by offering commissions, it has chosen to remain focused on retail-friendly, easy-to-understand funds.

Product lineup

Led by chief executive Vishal Jain, the AMC currently offers a range of passive products including index funds, exchange-traded funds (ETFs), and a recently launched multi-asset fund. Popular schemes include the Zerodha Nifty LargeMidcap 250 Index Fund, the Zerodha Nifty 1D Rate Liquid ETF, and the Zerodha Gold ETF.

This approach has resonated with a growing investor base. Zerodha Fund House now serves over seven lakh investors spread across more than 16,000 pincodes in India, according to its website. Earlier this year, in January, the AMC had reported an AUM of ₹4,287 crore with about four lakh unique investors — meaning its AUM has nearly doubled in just nine months, alongside a significant rise in participation.

Direct-to-consumer model

The fund house operates on a direct-to-consumer model, eliminating intermediaries in order to reduce costs for investors. This strategy aligns with Zerodha’s larger philosophy of democratizing financial services through technology and transparency. By keeping expenses low and products straightforward, the AMC has positioned itself as an attractive alternative for first-time investors as well as seasoned retail participants seeking low-cost passive funds.

Industry context

The milestone comes at a time when the Indian mutual fund industry is rapidly expanding, with passive investing gaining momentum among retail investors. While established fund houses continue to dominate in terms of overall market share, newer AMCs such as Zerodha Fund House are leveraging innovation, technology, and simplified offerings to carve out a space in the segment.

For Zerodha, the Rs 8,000 crore AUM mark not only validates its direct-only model but also highlights the growing appetite for passive investment products in India’s retail investor community.