Upcoming NFO: Zerodha Mutual Fund Files Draft Papers with SEBI for 2 New Life Cycle Funds

Zerodha Mutual Fund has filed draft scheme documents with the Securities and Exchange Board of India (SEBI) for 2 life cycle funds, Zerodha Life Cycle Fund 2036 and Zerodha Life Cycle Fund 2041.  

Both are open-ended schemes with a predefined maturity period and a glide path approach to asset allocation for goal-based investing. 

Investment Strategy 

The proposed schemes plan to invest across equity, debt, InvITs, exchange-traded commodity derivatives (ETCDs), and gold and silver exchange-traded funds (ETFs).  

The asset mix is expected to change over time, starting with a relatively higher equity allocation and gradually moving towards debt investments as the target year comes closer. 

Key Features of the Schemes 

The minimum investment amount for both funds has been proposed at ₹100, with investments allowed in any amount thereafter.  

The 2041 fund will be benchmarked against 65% Nifty 200 TRI, 25% CRISIL 10-Year Gilt Index and 5% each in domestic gold and silver prices, while the 2036 fund will track 50% Nifty 200 TRI, 40% CRISIL 10-Year Gilt Index and 5% each in domestic gold and silver prices.  

Both schemes are proposed to be managed by Kedarnath Mirajkar. 

Equity Exposure 

The draft documents state that when the remaining maturity falls below 10 years, the schemes may take equity arbitrage exposure of up to 50%, subject to overall equity and equity-related investments remaining within the 65% to 75% range under normal conditions. 

SEBI’s New Category 

SEBI introduced the life cycle fund category earlier this year after discontinuing solution-oriented funds.  

The framework allows mutual funds to launch schemes with maturities ranging from 5 to 30 years, in multiples of 5 years, with a maximum of 6 active life cycle funds available for subscription at any point. 

Read More: Nippon India Mutual Fund Imposes Limits on Gold BeES and Gold Savings Fund from June 8, 2026! 

Conclusion 

Zerodha Mutual Fund has proposed 2 life cycle funds with target years of 2036 and 2041, following SEBI’s new category for goal-based investing with a glide path strategy. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.