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Will Zerodha Disrupt Mutual Fund Industry | Active VS Passive Fund | Zerodha Mutual Fund

Will Zerodha Disrupt Mutual Fund Industry? | Zerodha Mutual Fund | Yadnya Investment Academy

Published on 11 March 2021 Views 719 Comments 2

Introduction:Zerodha Mutual Fund Review

Recently, SEBI has released an update on its website regarding the news of filing for mutual fund licenses by the Big-Bull Rakesh Jhunjhunwala’s ‘Alchemy Capital’ and Samir Arora’s ‘Helios Capital’.

Apart from these 2 big names, Bajaj Finserv Limited, Capital Mind, Frontline Capital Services, Unifi Capital Pvt, and Zerodha Broking Ltd., have also applied for the Mutual Fund Licenses with the market regulator. (Bloombergquint).

Will Zerodha create a Disruption?: Best Mutual Funds in Zerodha

Zerodha is the biggest trading platform in India and still growing strongly. Zerodha was a challenger trading platform until it achieved the rare Proficorn (a profitable startup with no external funding) title.

Entry of mutual fund zerodha will be an interesting thing to watch. Filing for Mutual fund licenses by Zerodha, also raises a question: Whether it will be creating disruption in the mutual fund industry, just like the company did in the case of the Broking Industry?

Zerodha is already the No.1 Discount Brokerage Firm in India with the active customer base of more than 26 lakh as per October 2020 (NSE Report).    

Also, Zerodha owns the app named “Coin”, which is a mutual fund distribution app.     

The title honored Zerodha as a rare profitable business unicorn in India. Zerodha is a common household name in the stock trading segment. Though not considered as a Fintech company, it is effectively a company built on the principles of new age technology. After all, Zerdoha led a zero brokerage disruption in the trading industry.                

Earning Visibility in Mutual Fund Industry: Zerodha Valuation

  • In the Mutual Fund industry, there is an ongoing debate between Active Funds and Passive funds Investing. Passive Funds basically involve Zerodha Index Funds and the ETFs, further, ETFs are already witnessing a decent growth in recent time and with gaining popularity, more ETFs can be launched in the coming time.

  • Unquestionably, due to lower penetration of the mutual fund industry in India, the existing AMCs & mutual fund companies in India are having a good earning visibility, increasing confidence and participation of the investors will also be a great addition to the same.

  • At present, the Mutual Fund Industry of India is valued at Rs. 30 lakh cr.

  • And possibly, with increasing penetration, the value might cross Rs. 60 lakh cr., but the earnings or net profit levels of the mutual fund industry will remain at the same level as it is currently on account of rising competition between Actively Managed Mutual Funds & Passively Managed Mutual Funds (Specifically ETFs).

Conclusion: How to Invest in Debt Funds in Zerodha

It will be quite interesting to witness the developments in the zerodha mutual fund industry in India with the arrivals of these names like Zerodha, Alchemy Capitals and Helios as well as the approach of existing mutual fund players. Alongside, growth of ETFs and whether existing players will take the ETF’s concept seriously will be another important thing to  keep a track off.

Get more useful articles on various stocks with appropriate stock ratings only on Invest Yadnya. We offer numerous resources for a detailed review on Zerodha Disrupt status. Check out more stock articles, for a thorough Invest Yadnya review.

 
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