Zerodha Mutual Fund files draft document with Sebi for another passive fund

Zerodha Mutual Fund has filed a draft document with SEBI for another passive fund. The Zerodha Gold ETF FoF will be an open-ended fund of fund scheme that invests in units of gold ETFs.
The scheme’s investment objective is to seek capital appreciation by investing in units of Gold ETFs. It offers both regular and growth plans, with the growth option only. The exit load will be nil, and the scheme will be benchmarked against the domestic price of physical gold. It will be managed by Shyam Agarwal and Kedarnath Mirajkar.


The minimum investment amount will be Rs 500, with subsequent investments in multiples of Re 1. The minimum application amount for SIPs across all frequencies will also be Rs 500. During the ongoing offer period, for subsequent additional purchases, investors can invest a minimum of Rs 500, with additional investments in multiples of Re 1.The scheme will allocate 95-100% in units of Gold ETF and 0-5% in debt securities and money market instruments. The investment strategy will involve passive investment in Gold ETFs, remaining invested in the underlying scheme regardless of prevailing gold prices or future outlooks for this asset class.

This fund will be suitable for investors seeking to generate long-term capital appreciation through investments in units of Gold ETFs, which in turn invest in physical gold.

The principal invested in the scheme will be categorized as having a “high” risk according to the scheme’s riskometer.

Additionally, the fund house has recently filed a draft document with SEBI for an overnight fund. This scheme will be an open-ended debt fund investing in overnight securities, characterized by relatively low interest rate risk and low credit risk.

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