Image Source: The Economic Times
In a move that could reshape how retail investors approach diversification, Zerodha Fund House has launched the Zerodha Multi Asset Passive Fund of Fund (FoF)—a single investment vehicle that blends four asset classes into one lowcost, taxefficient product. Announced on July 29, 2025, the fund is now open for subscription under its New Fund Offer (NFO), with a minimum investment of just ₹100.
Key Highlights from Today’s Launch
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The fund combines 30% Large Cap Equity ETFs, 30% Mid Cap Equity ETFs, 25% Gold ETFs, and 15% Government Securities ETFs
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Internal rebalancing ensures investors avoid tax implications during asset shifts
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Minimum investment during NFO is ₹100, with further investments allowed in multiples of ₹100
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Available on all major mutual fund platforms, making it widely accessible
What Makes This Fund Unique
Zerodha’s new offering is designed to eliminate the complexity of managing multiple asset classes. Instead of juggling separate investments in stocks, bonds, and commodities, investors can now access a prebalanced portfolio that adjusts internally—without triggering taxable events.
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Large Cap ETFs track India’s top 100 companies, offering stability and sector leadership
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Mid Cap ETFs provide exposure to fastgrowing businesses with higher return potential
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Gold ETFs act as a hedge against equity market volatility
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GSec ETFs add a layer of safety and income through sovereign debt instruments
This fixed allocation is periodically rebalanced, ensuring the portfolio remains aligned with its intended riskreward profile.
Who Should Consider This Fund
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Firsttime investors seeking a simple, diversified entry into the market
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DIY investors who want to avoid the hassle of manual rebalancing
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Longterm savers looking for a handsoff approach to wealth creation
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Taxconscious individuals who prefer minimal capital gains events
According to Zerodha Fund House CEO Vishal Jain, the fund is ideal for anyone looking for a “readymade, diversified investment” that doesn’t require active decisionmaking. Chief Business Officer Vaibhav Jalan added that the fund “takes the guesswork out of asset allocation.”
Tax Efficiency and Accessibility
One of the standout features of this fund is its tax treatment. Because the portfolio is rebalanced internally, investors only incur capital gains tax when they redeem their units—not every time the fund reallocates assets. This structure offers significant advantages over managing separate funds manually.
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No exit load or lockin period
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Gains held for over two years taxed as longterm capital gains at 12.5%
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Gains held for less than two years taxed as per individual income slab
The fund’s low entry barrier of ₹100 makes it especially attractive to younger investors and those testing the waters of mutual fund investing.
Strategic Implications for Zerodha
This launch positions Zerodha Fund House as a serious contender in the passive investment space, competing with established players like Axis Mutual Fund and ICICI Prudential. By offering a product that blends simplicity, diversification, and tax efficiency, Zerodha is tapping into a growing demand for lowmaintenance financial solutions.
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The fund is a joint venture between Zerodha Broking and Smallcase Technologies
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It reflects Zerodha’s broader mission to democratize investing through accessible, transparent products
Closing Insight
Zerodha’s Multi Asset Passive FoF is more than just a new fund—it’s a signal of where retail investing is headed. By bundling equities, gold, and government securities into a single, rebalanced portfolio, the fund offers a compelling alternative to traditional DIY strategies. For investors seeking simplicity without sacrificing diversification, this 4in1 solution could be the new gold standard.
Sources: Business Standard, CNBC TV18, FinTech BizNews, MSN Money
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