Exclusive AMA with Vishal Jain, CEO of Zerodha Fund House: Ask Your Questions Here!

AMA(Ask me anything)
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As per Regulations, all Mutual funds are required to disclose transactions in debt/ money market securities within 15 days from the date of transactions. This disclosure is made on AMC website and AMFI website.

In addition to that, all Schemes have to disclose their month end Portfolio where exposure of the scheme is disclosed in terms of amount and % of AUM.

Investors should go through these disclosures to track their scheme investments.

Therefore Indian Mutual Funds are one of the most transparent across the globe and rest assured the regulator is working towards making the industry more transparent.

Based on the Scheme’s offer document, the scheme can have exposure to futures and options for various purposes.

Would be good for you to take the help of an advisor to build an appropriate portfolio for your needs.

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Thank you for the answer.
Do they trade futures and options also along with equities?

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Insightful!

@omkar @thisisbanerjee @Champion_Trader Please share your thoughts on this as well.

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Zerodha Fund House is a digital-first, passive-only asset manager creating mutual funds & ETFs for every kind of investor. We will leverage technology extensively - at every customer touchpoint as well as internal systems - to develop digital-first experiences and democratize access to investment products and solutions.

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When it comes to ETFs, liquidity and tracking error are important factors to consider. Investors should also check the iNAV, which is available on the AMC website, before placing a trade. iNAV indicates the real value of the ETF unit and it’s a good practice to check if it is close to your trading price or not.

Asset allocation in a portfolio is important and It goes without saying that based on your financial objectives, have a mix across Equity, Debt and Commodity ETFs.

Further, you could also consult with a financial advisor.

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We believe that simple products can be instrumental in enabling more people to access the capital markets. Hence, we are focusing on the power of indexing to launch simple mutual funds & ETFs to form the core building blocks of every portfolio. While differentiation is tough to achieve all the time, we think there’s a long way to go in streamlining the investing experience and offering a larger catalog of funds that are relevant for the investor & their portfolios.

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Thank you, @Vishal_Jain_ZFH, for your insightful responses so far and for taking the time to address our community members’ queries today. Your contribution is greatly appreciated!

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Hi @ValueInvestor0

  1. India is still a very nascent market with penetration levels in mutual funds hovering around 3% of the population so we have a long way to go. It may not always be possible to differentiate but with more players and products, penetration has and would definitely keep increasing in the coming years helping financialization of savings.

  2. LifePath products are definitely something we like but the relevant regulatory framework does not exist currently in India and is WIP.

  3. This is how most markets are. May not be right to compare with the US markets but the Indian market is among the larger markets globally now. I think demand for thematic / strategy indices is still limited and demand is from a certain segment. As we go ahead there would be broad-basing of this demand which would also result in many more unique strategies in the coming years.

  4. Yes, we are looking at this segment actively and will come back on specific plans/launches

  5. Market is still very nascent. At ZFH we are trying to build a simple bouquet with a focus on simplicity because we feel that’s important for rapid penetration of mutual fund products. Our focus immediately is on providing basic building blocks with a mix of plain vanilla exposures and solutions and its heartening to see the response till now. Am happy to hear you are already using ETFs to build your portfolio.

  6. Well product innovation definitely helps especially if executed well. But what I have seen is that broad-based exposures always have demand across time periods while thematic/strategy exposures could be more opportunistic. We still have a long way to go in terms of penetration of mutual fund products and therefore I believe the market is large & nascent.

  7. Well, to start with, getting an AMC license itself is not easy to obtain. In general, a known brand always has faster recall with clients. However, asset management business is all about trust which gets built over a period and so though a known brand can help you hit the ground running but finally it’s the trust which helps sustain.

  8. I think there will always be a clear distinction between what MFs, PMS and AIFs can do. However, you may have seen the recent proposal from the regulator which talks of introducing a category which would allow greater flexibility to Mutual Fund products. We will need to wait for the final regulations on that.

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Thank you for answering all my questions @Vishal_Jain_ZFH I really appreciate it :slight_smile:

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Hi @DhruvikPatel_03,

You may read more here for detailed information.