Zerodha, India's largest discount stockbroker, has received the final nod from the Securities and Exchange Board of India (SEBI) to launch its mutual fund business. The company will launch its asset management company (AMC) in partnership with Smallcase, a wealth management platform.
Nithin Kamath, the co-founder and CEO of Zerodha, announced the development on Twitter. He said that the company plans to launch its first mutual fund product within the next two to three months.
Zerodha's entry into the mutual fund business is seen as a major challenge to the traditional players in the industry. The company has a large customer base of over 8 million users, and it is expected to use its technology and distribution network to attract a large number of investors to its mutual funds.
Zerodha's AMC will be called Zerodha Mutual Fund. The company has appointed Vishal Jain as its CEO. Jain is a veteran of the financial services industry, and he has held senior positions at companies such as HDFC Bank and Morgan Stanley.
Zerodha's entry into the mutual fund business is a major development. It is a sign that the company is looking to expand its business beyond stockbroking. The company is also looking to tap into the growing demand for mutual funds in India.
The mutual fund industry in India is expected to grow at a CAGR of 20% over the next five years. The industry is currently worth around Rs 40 lakh crore, and it is expected to reach Rs 100 lakh crore by 2028.
Zerodha's AMC is well-positioned to succeed in the mutual fund industry. The company has a large customer base, a strong technology platform, and a experienced management team. It is also backed by the brand name of Zerodha, which is one of the most trusted brands in the financial services industry.
Zerodha's entry into the mutual fund business is likely to shake up the industry. The company is expected to offer low-cost mutual funds, which will put pressure on the traditional players. It is also expected to use its technology platform to offer innovative products and services, which will attract a new generation of investors.
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