Startup Originals Team
In a recent post, Zerodha cofounder Nithin Kamath revealed that Zerodha Fund House, the asset management arm of Zerodha and Smallcase, has crossed the ₹8,000 crore mark in assets under management (AUM). What makes the milestone notable is that the fund house achieved this within two years, largely through individual investor participation and without heavy marketing.
Milestone Achieved in Two Years:
- The fund house, launched less than two years ago, has grown to an AUM of ₹8,000 crore.
- Kamath emphasized that the growth was quiet: “We have reached ₹8,000 crores despite not talking much about it.”
Retail Investors Drive the Growth:
- Remarkably, nearly all the AUM comes from individual investors, underlining strong retail trust in the platform.
- The direct-only model (no distributor commissions) and simplicity in product design are credited with helping attract and retain retail investors.
Strategy, Product Mix & Choices:
- Instead of pursuing aggressive marketing or paying distributor commissions, Zerodha Fund House has stuck with direct plans only and transparent, investor-friendly products.
- Its offerings currently include index funds, ETFs, and a recently launched multi-asset fund.
- Kamath shared a chart showing steady upward growth in AUM since inception, even as the mutual fund industry sees intense competition.
Challenges & Choices Ahead:
- Kamath acknowledged that the fund house could have grown faster had it adopted a regular plan + commission model, but chose to stay true to its founding ethos.
- As competition from other AMCs (both new and established) intensifies, maintaining growth, investor trust, and low costs will be key.
Conclusion:
Zerodha Fund House’s swift rise to ₹8,000 crore AUM, driven entirely by individual investors and built with restraint in marketing and commissions, is a strong validation of its philosophy. Nithin Kamath’s emphasis on substance over hype suggests they aim to grow steadily and sustainably, not just rapidly.
