Brokerage firm Zerodha on Wednesday received in-principle approval from markets regulator SEBI to start its mutual fund business, company’s founder and CEO Nitin Kamath said.
“So, we just got our in-principle approval for our AMC (MF) license. I guess now comes the hard part,” Kamath posted on Twitter.
Zerodha had applied for a license to start its Asset Management Company (AMC) in India in February 2020, a month before the country was hit by the Covid-19 pandemic.
“To increase the capital market share from the current 1.5 crore and address those who do not currently invest (Millennials), we feel there is a need to reimagine mutual funds as a product. So yes, we have just applied for AMC (Mutual Fund) license,” Kamath had said in February 2020.
Earlier this month, the financial services company Bajaj Finserv had announced that SEBI has given its in-principle approval to the company to sponsor mutual funds. The company will also set up an Asset Management Company (AMC).
The SEBI approval for Mutual Fund business for Zerodha comes at a time when MFs have become a popular mode of investment with the industry’s assets under management (AUM) reaching an all-time high. ₹35 lakh crore at the end of July.
Earlier today, asset management firm True Beacon launched a new alternative investment fund, which will invest in equities and tax-exempt bonds, Kamat said.
He further added that the new fund would be ideal for new investors who want to increase their exposure to equities.
The fund will invest in 200 of the country’s largest companies to achieve combined price appreciation with a sovereign-backed debt component to hedge against inflation and volatility.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.