In a remarkable achievement for India's mutual fund industry, Zerodha Fund House has crossed the significant milestone of ₹10,000 crore in assets under management (AUM) within just two years of its launch. The joint venture between Smallcase and Zerodha has demonstrated one of the fastest growth trajectories among new-age asset management companies in the country.
Rapid Growth Through Investor-First Approach
The fund house, which began operations in November 2023, has achieved this impressive scale entirely through its unique investor-first philosophy and exclusive focus on index-based investment products. Vasanth Kamath, Founder of Smallcase, announced this significant achievement through a LinkedIn post, highlighting the fund house's commitment to transparency and cost efficiency.
The AMC's pure focus on index-based funds and the strategic decision to operate exclusively through direct plans have been instrumental in building rapid trust among investors, Kamath emphasized in his statement. This approach has enabled the fund house to attract investors at an unprecedented scale while maintaining low operational costs.
Democratizing Mutual Fund Investments
The growth statistics reveal a fascinating pattern of financial inclusion and geographic diversification. Zerodha Fund House has already onboarded over 8 lakh investors, with an impressive 12% representing first-time mutual fund participants. More significantly, 60% of these investors hail from beyond India's top 30 cities, indicating strong mutual fund penetration in non-metro regions.
This trend of retail-driven growth was evident as early as September 2025, when the fund house had crossed ₹8,000 crore AUM. At that time, Nithin Kamath had described this achievement as unique because the entire AUM came from individual investors rather than institutional players. This retail-first approach continues to define the fund house's operating philosophy of creating products "for retail, by retail."
Liquid ETF Emerges as Star Performer
Among its product offerings, Zerodha's LIQUIDCASE (Zerodha Nifty 1D Rate Liquid ETF) has emerged as a standout success story. The ETF has become one of the fastest-growing liquid ETFs in India, reaching nearly ₹6,000 crore AUM in under two years since its January 2024 launch.
Nithin Kamath, Zerodha's Founder and CEO, identified LIQUIDCASE as the fund house's "hero fund" in a post on X. The ETF's growth has been nothing short of spectacular, climbing from ₹843 crore in April 2024 to ₹4,700 crore within just 15 months. What makes this achievement more remarkable is that the expansion has been entirely organic, driven by genuine investor demand rather than aggressive marketing.
As India's first liquid ETF with a growth NAV, LIQUIDCASE offers distinct advantages to retail investors by eliminating the need to track dividends while providing high liquidity with minimal risk. These features have significantly contributed to its growing popularity among individual investors seeking convenient and efficient investment options.
Building a Disruptive Financial Ecosystem
Nithin Kamath provided additional context about the fund house's journey in his social media post, noting that despite minimal marketing efforts, the AMC's direct-only model has attracted over 7 lakh retail investors who have collectively saved ₹6,400 crores across various funds.
The success of Zerodha Fund House underscores the increasing acceptance of passive investing strategies among Indian investors. With a young asset management company achieving such significant AUM purely through direct retail participation and transparent product offerings, the Zerodha-Smallcase joint venture is establishing itself as a powerful disruptor in India's mutual fund landscape.
Complementing this growth, Zerodha has also strengthened its financial ecosystem through strategic investments, including a recent $5 million (approximately ₹45 crore) investment in Tijori Finance on November 27, further enhancing its analytical and financial tool offerings.
The ₹10,000 crore AUM milestone represents more than just numerical success—it signals a fundamental shift in how Indian retail investors approach wealth creation through systematic, cost-effective, and transparent investment vehicles.
