Introducing Zerodha Fund House
So, the NFOs of the first two funds of Zerodha Fund House are finally open.
The two funds we have launched are an open-ended index fund and an equity-linked savings scheme (ELSS), or tax saver fund that tracks the Nifty LargeMidcap 250 Index.
We will be a passive-only AMC to avoid the conflict of promoting what generates higher income (active funds). By focusing only on index products, we can hopefully help spread the idea of passive funds in India.
Every AMC can have only one ELSS tax saver fund that’s either active or passive. Most AMCs have active ELSS funds because of the same reasons mentioned above. So, we are launching a passive ELSS as well.
In the active vs. passive debate, the data shows that over the long run, most active funds struggle to outperform their chosen benchmarks, and it will only continue to get harder.
You can apply for the NFO on any direct mutual fund platform, including Coin
Check this post (in reply) for more about why we started Zerodha AMC with smallcase