Zerodha Fund House has marked a significant milestone in India’s asset management landscape with the recent launch of two new open-ended schemes—Zerodha Nifty 50 ETF and Zerodha Nifty 50 Index Fund—both crafted to mirror the performance of the Nifty 50 Total Return Index (TRI). These products open a straightforward gateway for investors to participate in the growth story of India’s 50 largest and most liquid companies.
Overview of New Schemes
Scheduled for allotment and market listing from mid-October 2025, the Zerodha Nifty 50 Index Fund will begin allotting units on October 14, reopening for ongoing subscription from October 17. The ETF counterpart is poised for exchange listing on October 20. Both products aim to track the Nifty 50 TRI, although slight deviations due to tracking errors may occur. Designed primarily for long-term investors comfortable with market volatility, the schemes emphasize simplicity, low cost, and diversified exposure to blue-chip Indian equities. The fund house recommends consulting financial advisers to ensure alignment with individual investment objectives and risk tolerance.
Launching the Zerodha Nifty 50 ETF & the Zerodha Nifty 50 Index Fund! pic.twitter.com/EDxrcE8KHL
— Zerodha Fund House (@ZerodhaAMC) September 26, 2025
Zerodha Fund House: Company Background and Growth
Founded in 2023 as a joint venture between Zerodha Broking Ltd and Smallcase Technologies, ZFH embodies a tech-forward approach emphasizing direct-to-consumer offerings and passive investment products. It operates on a no-commission, transparent model focused largely on index funds, ETFs, and multi-asset funds.
In just under two years, Zerodha Fund House has achieved assets under management (AUM) of approximately ₹8,000 crore, serving over 700,000 investors spread across 16,000 pincodes nationwide. The platform’s rapid growth reflects its appeal among retail investors seeking low-cost, technologically accessible investment avenues.
Financial Performance
According to the company’s latest financial reports for FY 2023-24, ZFH showed total income of ₹48.5 crore, a notable rise from ₹18.9 crore in the previous year. Expenses rose correspondingly, reflecting the fund house’s expansion efforts, resulting in a pre-tax loss of around ₹73.6 crore. As a nascent AMC, these figures underscore ongoing investments in infrastructure and product development aimed at long-term scale and market penetration.
Core Product Suite and Market Position
ZFH’s portfolio, besides the new Nifty 50 schemes, includes various index-based funds such as the Zerodha Nifty LargeMidcap 250 Index Fund, the Zerodha Nifty 1D Rate Liquid ETF, and commodity ETFs like Zerodha Gold and Silver ETFs. The company distinguishes itself by providing easy access to diversified investment options with minimal fees, appealing heavily to first-time investors and working professionals.
Benefits for Retail Investors
- Diversification: One investment covers India’s top 50 large-cap companies, minimizing individual stock risk.
- Cost Efficiency: Lower expense ratios typical of passive funds (often between 0.05%-0.20%) mean higher net returns versus many actively managed funds.
- Liquidity: ETFs offer intraday tradability; index funds suit regular, systematic investment plans (SIPs).
- Simplicity: Eliminates the need for stock research and market timing, aligning investor returns closely with overall economic growth.
Industry Context and Competition
The Indian mutual fund industry is witnessing heightened competition in passive investment products. Traditional giants such as SBI Mutual Fund and Nippon India Mutual Fund alongside newer tech-enabled entrants like Groww AMC have all intensified launches of ETFs and index funds. Zerodha Fund House’s focus on transparency, simplicity, and retail investor empowerment through technology distinguishes it in this competitive milieu.
Outlook and Future Potential
As India’s equity markets deepen and broaden, passive funds tracking benchmark indices like the Nifty 50 are expected to gain significant traction among investors. Zerodha Fund House’s evolving product labeling and categorization suggest adaptive portfolio management strategies responsive to changing market dynamics and investor needs.
The launch of these new Nifty 50 schemes underscores ZFH’s commitment to democratizing investment access, leveraging technology, and aligning retail portfolios with India’s economic growth story—resonating deeply with investors aiming for long-term wealth creation through low-cost, diversified equity exposure.
This latest development reflects Zerodha Fund House’s steadily growing presence as a transformative force in India’s asset management sector, especially appealing to the vibrant and expanding class of retail investors seeking straightforward, cost-effective investment solutions.
