Zerodha Fund House, the asset management arm of discount brokerage Zerodha in partnership with Smallcase, has achieved a significant milestone by surpassing Rs 8,000 crore in assets under management (AUM) in under two years since its inception. Cofounder and CEO Nithin Kamath announced the feat on X (formerly Twitter) on September 23, 2025, noting that “practically all of this AUM comes from individual investors” despite minimal marketing efforts. For mutual fund investors, fintech enthusiasts, and industry watchers searching Zerodha Fund House Rs 8000 crore AUM, passive investing growth India 2025, or Zerodha ETF performance, this direct-to-consumer, commission-free model underscores the rising tide of retail participation in low-cost index funds and ETFs, now serving over 7 lakh investors across 16,000+ pincodes.
From a modest Rs 1,000 crore in March 2024 to Rs 4,287 crore in January 2025, the fund house’s trajectory reflects the broader mutual fund industry’s shift toward passive products, where Zerodha’s offerings like the Nifty 1D Rate Liquid ETF lead the charge.
The Growth Journey: From Startup to Rs 8,000 Crore in 2 Years
Launched in October 2023 as a joint venture between Zerodha and Smallcase, Zerodha Fund House focuses exclusively on passive funds—mirroring indices without active management—to minimize costs and appeal to cost-conscious retail investors. Its direct-only approach skips intermediaries, passing savings to users and driving organic adoption.
Key milestones:
- March 2024: Crossed Rs 1,000 crore AUM within months of launch, with 1 lakh investors.
- May 2025: Hit Rs 6,400 crore, powered by the LIQUIDCASE ETF at Rs 4,700 crore.
- January 2025: Reached Rs 4,287 crore with over 4 lakh unique investors.
- September 2025: Rs 8,000 crore, with 7 lakh+ investors across 16,000 pincodes.
Kamath highlighted: “We could have grown faster, but the direct-only model prioritizes long-term trust over hype.” The fund house manages 12 schemes, emphasizing ETFs and index funds for simplicity.
| Milestone Date | AUM (Rs Crore) | Unique Investors | Key Fund Driver |
|---|---|---|---|
| March 2024 | 1,000+ | 1 Lakh | Early Adoption |
| May 2025 | 6,400 | – | LIQUIDCASE ETF |
| January 2025 | 4,287 | 4 Lakh+ | Index Funds |
| September 2025 | 8,000 | 7 Lakh+ | Retail Surge |
Standout Schemes: Liquid ETF Leads the Pack
Zerodha’s portfolio shines in passive offerings, with the Nifty 1D Rate Liquid ETF dominating at Rs 5,360 crore AUM—making it one of India’s most successful retail ETF launches. Other funds include the Zerodha Nifty LargeMidcap 250 Index Fund and Zerodha Gold ETF, catering to diversified, low-cost exposure.
Top performers:
- Nifty 1D Rate Liquid ETF: Rs 5,360 crore; steady growth in liquid assets.
- Nifty LargeMidcap 250 Index Fund: Broad equity tracking for long-term investors.
- ELSS Tax Saver Nifty LargeMidcap 250 Index Fund: Tax benefits with index efficiency.
As of August 31, 2025, total AUM stood at Rs 7,579 crore across 12 funds, per ACE MF data. The direct model has attracted retail-heavy inflows, contrasting with traditional AMCs like SBI and Nippon India pushing similar passives.
Market Context: Passive Wave in India’s Rs 69 Lakh Crore MF Industry
Zerodha’s success mirrors the mutual fund sector’s evolution: AUM hit Rs 69.3 lakh crore by December 2024, with passive funds growing 30% YoY amid competition from Groww AMC and others. Retail investors, empowered by apps like Zerodha’s Coin, favor low-cost ETFs—Zerodha’s 7 lakh users span 16,000 pincodes, proving geographic reach.
Challenges include rising passive saturation and regulatory scrutiny on direct plans, but Kamath’s “silent success” strategy—minimal ads, maximum efficiency—has paid off.
Future Outlook: Scaling to Rs 10,000 Crore and Beyond
With plans for more ETF/index launches, Zerodha eyes Rs 10,000 crore by FY26, per industry estimates. CEO Vishal Jain emphasized: “Our direct-only focus builds lasting investor relationships.” As passive investing surges, Zerodha’s model could inspire more broker-led AMCs.
Conclusion: Zerodha’s Quiet Conquest in Mutual Funds
Zerodha Fund House’s Rs 8,000 crore AUM in under 2 years is a masterclass in retail-driven passive growth, proving low costs and direct access resonate. From 1 lakh to 7 lakh investors, it’s a fintech-fintech win. For those eyeing passive mutual funds India 2025, Zerodha’s trajectory tempts: Will it hit Rs 10,000 crore next? The inflows suggest yes. ET
