Zerodha, Helios, Jio To Launch Mutual Fund Businesses, 2 Get Approval

Zerodha, a stock broker firm, has received the final regulatory approval to establish its Asset Management Company (AMC).

This was announced and confirmed by the company’s founder, Nikhil Kamath, on social media platform X (formerly Twitter).

This allows Zerodha to enter the mutual fund business. They had applied for this approval nearly 19 months ago and will be partnering with Smallcase, a wealth management firm, for this venture.

The focus of Zerodha’s AMC will be on creating simple and passive investment products like index funds and ETFs. Kamath explained that the motivation behind starting this mutual fund company was twofold.
Firstly, to address the challenge of limited participation in the Indian market despite recent growth. Secondly, to provide straightforward investment options for new investors.

Vishal Jain, an experienced professional in passive investing in India, has been appointed as the CEO of the AMC. The company aims to keep things easy to understand and to offer funds that align with investors’ various goals.

Mukesh Ambani’s Jio Financial Services is also entering the mutual fund scene. Teaming up with BlackRock, a global asset management company, they plan to bring low-cost passive investment products to the Indian market.

While specific details are not yet available, their entry could significantly impact India’s $540 billion mutual fund industry.

Another player, Samir Arora’s Helios Capital, has received regulatory approval from SEBI to launch a mutual fund business. This approval comes after their application in February 2021.

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The 3 new players entering the mutual fund market in India:

1. Nithin Kamath’s Zerodha AMC
2. Mukesh Ambani’s Jio Financials
3. Samir Arora’s Helios Capital

These companies are expected to offer accessible and simple investment options in the mutual funds segment. Their new approaches potentially impact the landscape of the investment industry.