Zerodha Fund House's new Multi Asset Passive Fund: All you need to know

Zerodha Fund House has launched the Zerodha Multi Asset Passive Fund of Fund (FoF), an open-ended scheme that diversifies investments across four asset classes: Large Cap Equity, Mid Cap Equity, Gold, and Government Securities (G-secs). The New Fund Offer (NFO) is currently open for subscriptions, with a minimum investment set at ₹100. The fund is structured to include 30% investments each in Large Cap and Mid Cap Equity ETFs, 25% in a Gold ETF, and 15% in a G-sec ETF. These allocations are fixed, and the portfolio will be internally rebalanced at regular intervals, ensuring that investors only encounter tax upon redemption of units. This approach allows investors to benefit from a diversified portfolio without the hassle of managing individual asset classes.

CEO Vishal Jain described the fund as "a good starting point for investors who want a simple, ready-made diversified portfolio." This product is aimed at avoiding the complexities involved in asset allocation, providing investors with easy access to multiple asset classes in one consolidated product. The fund is available on all major mutual fund platforms, making it accessible to a wide range of investors. Additionally, the fund's simplicity is expected to attract new investors who are looking for a hassle-free investment experience.

Zerodha Fund House, a joint venture between Zerodha Broking and Smallcase Technologies, focuses on delivering simple and low-cost investment products.

The fund's launch positions it strategically within the competitive mutual fund industry, which includes rivals such as Axis Mutual Fund and ICICI Prudential Mutual Fund, both known for their significant market presence.

Vaibhav Jalan, CBO, emphasised that "the fund removes the guesswork from asset allocation," underscoring its appeal to investors seeking straightforward investment solutions. This strategic move is expected to enhance Zerodha's market presence and attract a broader investor base.