Zerodha Mutual Fund

About Zerodha Mutual Fund

Zerodha Mutual Fund, a subsidiary of Zerodha Broking Limited, entered the investment world on August 11, 2023, and has since established itself as a trustworthy option for investors. The mutual fund was incorporated on December 20, 2021, and is led by Mr. Vishal Jain, who is dedicated to providing a productive investment experience​​. Zerodha Fund House offers straightforward and transparent funds tailored to investors' goals and objectives, emphasising passive investment strategies. They have made their funds available across major digital platforms like Angel One.As of March 6, 2024, Zerdoha Mutual Fund, which has an AUM of ₹597.24 crore, offers 2 fund schemes, and 2 ETFs. The fund house includes index funds, liquid ETFs, and a Gold ETF, explicitly highlighting their Nifty LargeMidcap 250 Index Funds, which aim to expose India's top 250 companies across diverse sectors​​. A notable feature of Zerodha's offering is its low expense ratios, making these funds attractive for cost-conscious investors. For instance, the Zerodha Nifty LargeMidcap 250 Index Fund has an expense ratio of 0.25%, with a minimum investment requirement of ₹100​​. Additionally, Zerodha's mutual funds are designed for direct investment, meaning they do not involve transaction charges from any platform, though they incur government-regulated stamp duties​​. The fund house has committed to expanding its portfolio with more passive products that are easy to understand, aiming to play specific roles in investors' portfolios both in fund and ETF formats​​.

Zerodha Mutual Fund Key Information

Investing in the Zerodha Mutual Fund is hassle-free through your Angel One account. You just have to follow these steps: 

Step 1: Log in to your Angel One account using your registered mobile number. Validate the OTP and finally enter your MPIN. 

Note: If you do not have a Demat account with Angel One, you can open one in a few minutes by fulfilling the KYC procedure and submitting the necessary documents. 

Step 2: Determine the most-suited fund based on your needs and risk profile. You can evaluate each fund under the mutual fund section on the Angel One app. Things to consider at this stage are:

1. Search for the fund you want to invest in or take cues from funds listed by Angel One across categories.
2. Analyse the fund’s past performance, tax incidence, constituent sectors and stocks.
3. Calculate the potential returns using the calculator.
4. Evaluate the fund’s level of risk and weigh it against your risk tolerance.
5. Check the fund’s ratings given by reputed rating agencies. Generally, the ratings range from 1 to 5.
6. Consider the fund’s expense ratio to get an idea about the cost of investing in it.

Step 3: Once you finalise the fund(s) you want to invest in, open your Angel One account, go to the Mutual Funds section, and look for it. Since this can be a long-term investment, be careful when choosing the fund that you would like to invest in. At this stage, consider the following:

1. Decide whether you want to invest in a lump sum or via monthly SIP
2. Next, enter the amount you want to invest and choose how you want to make the payment. UPI is the preferred mode. Alternatively, you can choose net banking
3. After placing the order, in the case of the SIP route of investment, you can create a mandate to make hassle-free future instalments.

Documents Required To Invest in Zerodha Mutual Fund

Investing in Zerodha Mutual Funds through Angel One is a seamless, fully digital process, eliminating any hassles from your investment journey. To initiate the KYC process, you'll need to provide the following crucial documents:

1. PAN Card Details (Mandatory)
2. Personal Information, including your Full Name, Mobile Number, and Email Address.
3. Address Proof – An Aadhar Card is recommended, and both its front and back sides are necessary.
4. Bank Account Details, along with a cancelled cheque, if required.
5. Nominee details and FATCA Declarations

Angel One simplifies the KYC verification, providing swift and efficient access to Zerodha Mutual Funds, whether you're a new or returning investor. Our user-friendly platform makes your financial goals easily achievable. Your KYC process will be completed in just 48-72 business hours, allowing you to embark on your mutual fund journey promptly.

Top Zerodha Mutual Funds to Invest

Note: All data is as of February 2025, and the selected funds have demonstrated the highest absolute returns over the past 1 year.

1. Zerodha Nifty 1D Rate Liquid ETF

The Zerodha Nifty 1D Rate Liquid ETF is an open-ended exchange-traded fund that aims to provide liquidity with relatively low risk by investing in overnight instruments such as Tri-Party Repo on Government Securities or T-bills, Reverse Repo, Cash & Cash equivalents, and Government Securities. The fund seeks to replicate the performance of the NIFTY 1D Rate Index, subject to tracking error. Managed by Kedarnath Mirajkar, the ETF offers a convenient option for investors to park surplus funds for short durations. The fund has no exit load, allowing for flexibility in redemptions.

2. Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund

The Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund is an open-ended equity-linked savings scheme (ELSS) with a statutory lock-in period of 3 years, offering tax benefits under Section 80C of the Income Tax Act. The fund aims to replicate the NIFTY LargeMidcap 250 Index by investing in the same proportion as the index, thereby achieving returns equivalent to the Total Return Index of NIFTY LargeMidcap 250, subject to tracking error. Managed by Kedarnath Mirajkar, the scheme provides investors with exposure to a diversified portfolio across large and mid-cap companies. There is no exit load applicable, ensuring ease of redemption post the lock-in period.

3. Zerodha Nifty LargeMidcap 250 Index Fund

The Zerodha Nifty LargeMidcap 250 Index Fund is an open-ended equity scheme that aims to replicate the performance of the NIFTY LargeMidcap 250 Index by investing in stocks comprising the index in the same proportion. This approach seeks to provide returns equivalent to the Total Return Index of NIFTY LargeMidcap 250, subject to tracking error.  Managed by Kedarnath Mirajkar, the fund offers investors exposure to a broad spectrum of large and mid-cap companies, facilitating diversified equity participation. The scheme does not impose an exit load, allowing investors the flexibility to redeem their investments as per their financial goals.