Zerodha MF files draft with SEBI to launch Zerodha Life Cycle Fund 2036, a goal based multi asset scheme with glide path strategy
The draft document was filed with the market regulator on June 5.
According to the draft papers, the scheme aims to generate long-term capital appreciation by investing across multiple asset classes, including equity, debt instruments, InvITs, exchange-traded commodity derivatives, and gold and silver ETFs.
The fund will follow a pre-defined glide path strategy, under which the portfolio’s asset allocation gradually shifts from a relatively aggressive stance in the initial years to a more conservative, debt-oriented allocation as the target year approaches.
The proposed scheme’s performance will be benchmarked against a composite index comprising 50% Nifty 200 TRI, 40% CRISIL 10-Year Gilt Index, and 5% each allocated to domestic prices of physical gold and silver. The fund is proposed to be managed by Kedarnath Mirajkar.
The minimum investment amount under the scheme is proposed at ₹100 and in multiples thereafter. Under certain conditions, particularly when the scheme is within 10 years of maturity, it may take equity arbitrage exposure of up to 50% while maintaining overall equity and equity-related exposure within the prescribed limits.
The filing comes as asset management companies begin introducing products under SEBI’s newly created Life Cycle Fund category, which was introduced earlier this year as part of the regulator’s mutual fund categorisation and rationalisation framework.
Life cycle funds are designed to automatically reduce risk by lowering equity exposure and increasing debt allocation as investors move closer to their financial goal or target maturity date.
Zerodha Mutual Fund has also filed draft papers for a separate Life Cycle Fund 2041, another goal-based offering under the same category.
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