Zerodha Mutual Fund
Zerodha Mutual Fund positions itself as a passive-first AMC - focused on index funds and ETFs, offered only as direct plans (no distributor-led “regular” plans). If you want simple, rules-based investing with low minimums (often starting at ₹100), Zerodha AMC is built for that style.
Zerodha Mutual Fund Snapshot
Zerodha Asset Management Private Limited is an Indian company with a registered office in Bangalore, India. Zerodha Fund House highlights a “focus on passive,” “no agents, only direct plans,” and a transparency-led approach, backed by Zerodha and smallcase. Its funds are available on major platforms, including Coin by Zerodha and Kotak Neo.
From a practical investor standpoint, this means you’re typically buying index-oriented products where the goal is to track a benchmark, not beat it through stock-picking. Also, because these are direct plans, you avoid distributor commissions embedded in regular plans, though you still pay the fund’s expense ratio (TER) and applicable statutory charges like stamp duty.
- AMC Age: 4 Years
- Year of Establishment: 2021
- AUM: ₹ 11,677.06 Cr
List of Zerodha Mutual Funds in India
Zerodha Fund House offers a range of index funds/ETFs and has also introduced a multi-asset passive FoF. Common Zerodha schemes include:
Zerodha BSE SENSEX Index Fund | Equity | Very High | 9.87 | 0.15 | NA | NA | NA | [-] | ₹11 | [-] |
Zerodha ELSS Tax Saver Nifty Large Midcap 250 Index Fund | Equity | Very High | 14.02 | 0.29 | 9.2% | NA | NA | [-] | ₹251 | [-] |
Zerodha Nifty Short Duration G-Sec Index Fund | Debt | Low to Moderate | 1,001.74 | 0.18 | NA | NA | NA | [-] | NA | [-] |
Zerodha Overnight Fund | Debt | Low | 10.46 | 0.08 | NA | NA | NA | [-] | ₹74 | [-] |
Zerodha Gold ETF FoF Direct-Growth | Commodities | High | 21.26 | 0.23 | 94.7% | NA | NA | [-] | ₹212 | [-] |
Zerodha Multi Asset Passive FoF Direct-Growth | Hybrid | Very High | 11.54 | 0.21 | NA | NA | NA | [-] | ₹104 | [-] |
Zerodha Nifty 50 Index Fund | Equity | Very High | 10.06 | 0.1 | NA | NA | NA | [-] | ₹19 | [-] |
Zerodha Silver ETF FoF Direct - Growth | Commodities | Very High | 28.38 | 0.2 | NA | NA | NA | [-] | ₹175 | [-] |
Zerodha Nifty Large Midcap 250 Index Fund | Equity | Very High | 14.00 | 0.28 | 9.2% | NA | NA | [-] | ₹1,263 | [-] |
Key Features of Zerodha Mutual Funds
Here are the core characteristics you’ll see repeatedly across Zerodha AMC positioning and product design:
- Passive-first philosophy: The fund house explicitly describes itself as an “index fund specialist” with “focus on passive.”
- Direct-only funds: Zerodha Fund House states its funds “will only have Direct Plans,” i.e., no distributor model.
- Low minimums: The fund house lists minimum investments like ₹100 for the Zerodha Nifty LargeMidcap 250 Index Fund and ₹500 for its ELSS index fund.
- Costs and charges explained: The AMC charges an expense ratio (varies by fund), and stamp duty is levied at 0.005% on the value of units purchased (as per the Finance Act, 2019).
- SIP-friendly approach: Zerodha Fund House promotes SIP-style “autopilot” investing as a way to invest systematically.
How to Invest in Zerodha Mutual Funds through Kotak Neo
Kotak Neo lists Zerodha Mutual Fund under its AMC section for mutual funds, so you can browse Zerodha schemes on its platform. The standard flow usually looks like this:
- Open Kotak Securities and go to Mutual Funds → AMC list, then select Zerodha Mutual Fund.
- Choose the scheme (and option like Growth/IDCW, and plan type - Zerodha AMC emphasises direct plans).
- Pick investment type: Lump sum or SIP, enter amount (respecting the scheme’s minimum).
- Complete KYC/mandate requirements if prompted, then confirm the order.
If your goal is the lowest ongoing cost, ensure you are selecting the direct plan wherever the platform offers a plan choice (direct vs regular), since direct plans typically carry lower expense ratios than regular plans.
Who Should Invest in Zerodha AMC Funds?
Zerodha AMC may fit you if you prefer “set-and-stick” investing aligned to broad market indices rather than manager-driven stock selection. It also suits cost-conscious investors who want direct plans without a distributor layer, and those starting small (minimums like ₹100 can make it easier to begin early).
It may be less suitable if you specifically want an AMC that runs actively managed equity funds designed to beat the index, since Zerodha Fund House positions itself as passive focused.
Taxation of Zerodha AMC Mutual Funds
Tax depends on what the fund holds (equity-oriented vs other categories) and your holding period, so always verify the scheme category before planning taxes.
For equity-oriented mutual funds (where STT conditions apply), recent rules commonly summarised for investors include:
- STCG: taxed at 20% for transfers on or after 23 July 2024 (earlier it was 15%).
- LTCG: taxed at 12.5% on gains above the annual exemption limit; the exemption for listed equity/equity funds is described as ₹1.25 lakh in aggregate.
For debt funds (and certain “specified mutual funds”) bought on or after 1 April 2023, the gains are treated as short-term and taxed at your slab rate, regardless of holding period, and indexation is not available.
Risks Associated with Zerodha AMC Mutual Funds
Key risk buckets to keep in mind:
- Tracking difference/tracking error: Zerodha Mutual Fund aims to track a benchmark, but fees, cash balances, and execution can cause deviations.
- FoF structure risks (for multi-asset FoF): The Zerodha Multi Asset Passive FoF uses allocations across equity, gold, and G-sec exposure via ETFs, so performance depends on multiple underlying markets and fund costs.