Zerodha Fund House

What if you could get equity taxation on a relatively low risk fund? Introducing the Zerodha Arbitrage Fund, built for parking surplus money. Investors in higher tax brackets may consider this fund since it has relatively low risk with the lower taxation (LTCG, STCG) applicable to equity funds. The fund invests in a mix of equity, derivatives and debt instruments. While it majorly invests in equities, it doesn't depend on the stock market going up or down to generate returns from arbitrage. It aims to capture temporary price gaps between a stock and its derivatives. Here are a few key takeaways about the fund: 1) Tax Edge: Treated as an equity fund for tax purposes, offering post-tax efficiency than debt, especially for investors in higher tax brackets. 2) Market-Neutral Strategy: Returns are isolated from broader market swings, whether markets rise, fall, or move sideways. 3) Low Volatility: Can be used for short-term cash management at low risk. This fund may be ideal for conservative investors looking to park surplus cash for usually a few months, in a tax-efficient manner. You can start investing with ₹5,000 as a lump sum or at ₹1,000 as SIP (Post NFO). To learn more about the fund, check the link in the comments.

LiquidCASE just crossed ₹10,000 crore in AUM! 🚀 On this special milestone, I wanted to share the backstory of why we decided to launch India’s first growth-oriented liquid ETF. At smallcase, we run India’s largest model portfolios platform. Many of our manager partners (research analysts & advisors) who offer investment portfolios frequently allocate a portion to cash, depending on market conditions. Historically, these cash allocations were facilitated using dividend-based liquid ETFs. But this created multiple friction points for investors and managers alike: - Performance Tracking: Because the price of dividend-based liquid ETFs remains fixed (with returns earned via dividends), it always required a special handling to calculate the accurate returns of a model portfolio. - Residual Value in Portfolios: Returns on dividend ETFs are earned via the allocation of fractional units. Since Indian investors cannot place exchange orders for fractional shares, users were never able to completely exit their holdings, leading to remnant units in their demats. - Tax Inefficiency: With dividend-based ETFs, users are taxed on the dividends credited every month/week — even if they never actually sell or transact. When we launched our AMC in partnership with Zerodha, we knew we had to solve these problems for good—not just for our model portfolio platform, but for crores of Indian investors. That’s how LiquidCASE - India’s first growth-oriented Liquid ETF - was born. The response and adoption since launch have been incredible. So many retail investors, fund managers, analysts, and advisors have reached out to tell us that this is exactly the solution they’ve needed for years. What’s been even more amazing is that LiquidCASE didn’t just solve a problem; it catalyzed an entirely new category of growth-based liquid ETFs in the Indian market. 🙂 Next milestone: India’s largest Liquid ETF! 🎯

Imagine what your life will look like in 2041 - 15 years from now. The toddlers running around your house today might be packing their bags for college. You might be starting a dream business of yours, or laying the foundation for the home you actually want to retire into. For some of you, 2041 may be the year your paycheck stops and your investment portfolio takes over. 15 years is a long runway and any plan only pays off, if it stays on track the whole way through and not just in the final stretch. This is why the Zerodha Life Cycle Fund 2041 was structured for this longer horizon. It gives your money a path aligned to your 2041 timeline, following a pre-defined glide path across asset classes - equity, debt and commodities like gold and silver. It stays growth-oriented in the early years, then automatically shifts to a conservative allocation as 2041 approaches. The fund is treated as equity for taxation under current laws, and you can start investing with as little as ₹100. Check out the link in the comments for more details.

Imagine what your life will look like in 2036 - 10 years from now. You might have a plan to do a down payment for your home. You might be saving up to start a business with your own seed capital. Some of you might even be gearing up to fund your child’s education, or your own retirement. 10 years is a long time. The hard part isn't visualizing these goals - it's making sure that market volatility doesn't hamper your plans right when you're close to the finish line. That’s exactly why the Zerodha Life Cycle Fund 2036 was launched. It aligns your investments in the fund with your 2036 goals.   The fund invests across a mix of asset classes including equity, debt and commodities like gold and silver following a pre-defined glide path. As 2036 approaches, it automatically shifts from growth-oriented to conservative allocation to help you reach your goals. The fund is treated as equity for taxation purposes, as per current tax laws. You can start investing with an amount as low as ₹100. Check out the link in the comments for more info.

Most mutual funds don't have an end date. But your goals do. Introducing Zerodha Life Cycle Fund Series, India's first target date mutual funds. Zerodha Life Cycle funds are fundamentally different from other mutual funds. They are designed around a defined maturity year, called the target year. The funds invest across a mix of asset classes including equity, debt and commodities like gold and silver. The portfolio follows a pre-defined asset allocation that shifts systematically from a growth-oriented (higher risk) allocation in the early years to a more conservative allocation (lower risk) as the target year approaches. We're starting with two maturity variants:  1) Zerodha Life Cycle Fund 2036 (matures in 10 years)  2) Zerodha Life Cycle Fund 2041 (matures in 15 years) More versions with different target years will follow, so investors at every life stage have a fund built around their own finish line. If you are saving for retirement, building a corpus for a child entering college, or planning for any large expense with a defined timeline, these funds may work for you. These funds provide a disciplined, tax-efficient, structured approach to investing without actively managing the portfolio. You pick your target year, you stay invested, and the fund takes care of the rest. Throughout its lifecycle, the fund is treated as equity for taxation purposes. You can start investing in it with an amount as low as ₹100. The NFO is live on all major direct mutual fund investing platforms. You can check out the link in the comments for more info.

Invest for your child in their name. At Zerodha Fund House, our goal has always been to build investment products and journeys that enable more people to access the capital markets. A dedicated account for your child is a natural extension of that. When you open an account for your child, their portfolio sits separately from yours. You can track it alongside your own investments in one place, so you always have a clear picture of both. When your child turns 18 and completes their KYC, the account becomes fully theirs. If you have been planning to set money aside for your child in a structured way, this is a good place to start. You do not need a KYC, PAN, or bank account from your child - basic documentation is all it takes. Link in the comments to get started.

Do you know about this new category of mutual fund? A new standalone mutual fund category - called Lifecycle Funds has just been introduced,  which aims to simplify asset allocation for everyone. Here's the challenge with long-term investing: Suppose you're 30 today and planning to retire in 2055 - you would want to take more risk now, and dial it down as you near your goal. But doing this consistently is the hard part. It means rebalancing across multiple funds for 25 years. Markets shift, life gets in the way, and your conviction changes. Most investors eventually drift from the plan. Think of a Life Cycle Fund like an aircraft on autopilot. You set the destination at takeoff, say 2055, and that is the only call you make. Early in the journey, the plane climbs hard and fast. The fund mirrors this with a heavy tilt toward equity, aiming for growth. As it nears the destination, the plane gradually descends and levels out. The fund mirrors this too, slowly shifting into debt to protect your wealth. The autopilot adjusts the controls for you, year after year, all the way till you land. Here's how it plays out in practice. You pick a fund named after your goal year. Life Cycle Fund 2055, Life Cycle Fund 2045, and so on. That single choice puts you on a multi-year journey with a predefined trajectory. When you're 15 or more years from maturity, the fund holds 65% to 95% in equity. As you approach the target date of less than a year, it steps down to 5% to 20%. The entire shift is automatic and structurally built into the scheme. Nothing is left to discretion or market timing. Historically, the responsibility of managing asset allocation has often fallen on individual investors. Most don't have the tools or time to do it well. This category may be seen as a meaningful shift in how long-term goals get funded. One fund. One destination. One decision that lasts decades. Zerodha Mutual Fund SEBI Registration No: MF/080/23/06

A New Approach to Index Investing - A 2-in-1 index fund that invests in both equity and debt. Introducing the Zerodha Nifty LargeMidcap250 Plus 8-13 yr G-Sec 70:30 Index Fund. Most investors know they need to build a diversified portfolio. But this might need them to manage separate funds which means manually tracking your allocation, and rebalancing on your own. Most people know they have to do it - but they might not. So, what if there was a single index fund that helps you do that - by design? That’s where the Zerodha Nifty LargeMidcap250 Plus 8-13 yr G-Sec 70:30 Index Fund fits in. It's a one of its kind hybrid index fund designed for investors looking to gain exposure to both equity and debt - within a single, passively managed fund. This fund tracks an index that allocates: 📌 70% to Nifty LargeMidcap 250 Index - India's top 250 large and mid-cap companies 📌 30% to Nifty 8-13 yr G-Sec Index - government-backed securities with a maturity of 8-13 Yr Think of it this way - The equity allocation offers growth potential while the sovereign debt component reduces overall portfolio risk.  This 70:30 allocation in the underlying index is automatically rebalanced every month, so the discipline of staying balanced is built into the index itself with no action needed from your end. This fund might be suitable for someone looking to build a portfolio which is a mix of equity and debt with a long term investment horizon. You can start investing in this fund with a min.investment amount as low as ₹100. You can learn more about the fund and its associated risks on our website. Link in the comments.