NFO Alert: Zerodha Mutual Fund launches multi-asset passive FoF

Zerodha Mutual Fund has announced the launch of Zerodha Multi Asset Passive FoF, an open-ended fund of fund scheme investing in units of Equity, Debt Index Funds/ ETFs, and Commodity ETFs.

The new fund offer, or NFO of the fund, is open for subscription and will close on August 8. The fund will reopen for continuous sale and repurchase within five business days from the date of allotment of units under NFO.

Also Read | Mutual fund houses launch over 100 passive funds in 2025. Will Sebi's new rules shift the trend?

The investment objective of the scheme is to provide diversified exposure across multiple asset classes—equity, debt, and commodities—through a passive investment approach. By blending asset classes with low correlation, this scheme seeks to offer better risk-adjusted returns while reducing overall portfolio volatility.

The fund will be benchmarked against 60% Nifty 200 TRI + 15% CRISIL 10 year Gilt Index + 25% Domestic prices of Physical Gold and will be managed by Kedarnath Mirajkar. The fund will offer only direct plans and only growth options. The exit load is nil.

During the new fund offer (NFO), the minimum investment is Rs 100 and in multiples of Rs 100 thereafter. The minimum application amount for monthly SIP is Rs 100 with one minimum installment.

The fund will allocate 50-70% in domestic equity ETFs/Index funds, 10-20% in domestic debt ETFs/Index funds, 20-30% in commodity ETFs, and 0-5% in debt securities and money market instruments.

Also Read | This Rs 40,000 crore large & midcap fund multiplies lumpsum investment of Rs 1 lakh by 15 times in 15 years

This passive fund has shared nearly 40 funds as the underlying funds. The cumulative gross exposure through equity, debt, commodity based mutual fund schemes and and such other securities/assets as may be permitted by SEBI from time to time should not exceed 100% of the net assets of the scheme. However, cash and cash equivalents with residual maturity of less than 91 days may be treated as not creating any exposure.

The fund is suitable for investors who are seeking long term wealth creation and want diversified exposure by investing across multiple asset classes viz., Equity, Debt Index Funds/ ETFs and Commodity ETFs.


( Originally published on Jul 25, 2025 )