Zerodha to form JV with Smallcase for mutual funds

“While waiting for the final approval from our AMC (mutual fund), we asked whether we should build it ourselves or collaborate. Given @SmallCaseHQ’s 6+ years of experience in building investment products, it makes perfect sense to form a JV to build an AMC,” he said in his tweet.

Zerodha will focus on building low cost passive mutual fund products.

Smallcase founder Vasant Kamath said in his tweet, “The upcoming AMC will be a joint venture between Zerodha and Smallcase and will use the learnings and shared values ​​from both the cos (sic) to build a sustainable fund house.”

Smallcases are baskets of stocks or exchange-traded funds (ETFs) that are combined together to represent a single investment theme or strategy.

Zerodha had received in-principle approval from the Securities and Exchange Board of India (SEBI) in September 2021 on its mutual fund application.

Recently, Bajaj Finserv has received the final approval to start its mutual fund business. Bajaj Finserv Asset Management (BFAML) has already filed seven MF schemes with SEBI.

These are Bajaj Money Market Fund, Bajaj Overnight Fund, Bajaj Arbitrage Fund, Bajaj Large & Mid Cap Fund, Bajaj Liquid Fund, Bajaj Balanced Advantage Fund and Bajaj Flexi Cap Fund.

Apart from Zerodha, Helios Capital Management Pte and Old Bridge Capital Management have received in-principle approval from SEBI and are awaiting final nod.

Unifi Capital Pvt, Alchemy Capital Management, Angel One, MK Global Financial Services, Abira Securities, Alpha Alternatives Fund Advisors and WiseMarkets Analytics (Capitalmind) are awaiting in-principle approval from SEBI.