Notably, debt index funds had seen development from negligible to no AUM until March 2021 however reached the milestone AUM of Rs 1.1 lakh crore in March 2024. Debt index funds constituted 51.5% of the full AUM and 48.5% was contributed by fairness index funds.
“The rising contribution of folios to the MF trade is incrementally being contributed by index funds. Practically 11% of recent folios final monetary 12 months got here from index funds. It’s only the start of a rising development and Zerodha Fund Home is proud to play its half in it. Retail traders more and more choose to have easy & clear exposures with passive merchandise like index funds of their portfolios and this development is heartening to see,” mentioned Vishal Jain, CEO, Zerodha Mutual Fund.
Many mutual fund homes have launched fairness and debt index funds within the final 4 years to cater to the rising urge for food and confidence of traders in index funds, The whole variety of index funds has elevated from 44 in March 2021 to 207 in March 2024. This accounts for an absolute development of 370%. As of March 31, 2024, there are 120 and 87 fairness and debt index funds respectively.
The index funds class property have been at a report excessive of Rs 2.43 lakh crore as of June 2024, and has seen a surge of almost 900% in property up to now three years. Throughout all the opposite mutual fund classes, index funds witnessed the very best AUM development (in %) over the previous 3 years.
The fund home presently affords two index funds – Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund. These funds are open-ended schemes monitoring Nifty LargeMidcap 250 Index and Nifty LargeMidcap 250 Index respectively.
Zerodha ELSS Tax Saver Nifty LargeMidcap 250 Index Fund is an open-ended passive fairness linked financial savings scheme with a statutory lock-in interval of three years and tax profit monitoring Nifty LargeMidcap 250 Index.
