Zerodha Fund House: Retail investors drive index fund growth 12x in less than 4 years

Whole retail pages index fund In keeping with a research by Zerodha Fund Home, the practically 12-fold improve from 0.495 million in March 2020 to 59.37 million in December 2023 signifies a major surge within the adoption of index funds by retail traders prior to now few years.Belongings below administration (AUM) of index funds grew 25 occasions as of March 2024, from about Rs 8,000 crore in March 2020 to about Rs 2,135 billion.

particularly, debt index funds AUM grew from negligible to zero by March 2021 however reached a milestone of Rs 110 crore in March 2024. stock index funds.

“Index funds are step by step making an rising contribution to the MF business. Practically 11% of latest portfolios within the final monetary yr got here from index funds. That is only the start of a rising development and Zerodha Fund Home is proud to play its half in it. The rising development amongst retail traders to make use of passive merchandise comparable to index funds for easy and clear investing of their portfolios is thrilling. Zerodha Mutual Fund.

Many mutual fund corporations have launched inventory and debt index funds prior to now 4 years to cater to traders’ rising curiosity and confidence in index funds, with the overall variety of index funds rising from 44 in March 2021 to 207 in March 2024 . As of March 31, 2024, there have been 120 inventory index funds and 87 legal responsibility index funds respectively.

Belongings within the index fund class reached an all-time excessive of Rs 243 crore as of June 2024, with belongings surging practically 900% prior to now three years. Amongst all different mutual fund classes, index funds have had the very best AUM progress fee (in share phrases) over the previous 3 years.

The fund home at the moment presents two index funds – Zerodha Nifty Large Mid Cap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund. These funds are open-ended schemes monitoring the Nifty LargeMidcap 250 Index and Nifty LargeMidcap 250 Index respectively.

Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund is an open-ended passive equity-linked financial savings scheme with a statutory lock-in interval of three years and tax advantages monitoring the Nifty LargeMidcap 250 Index.