InvestorQ : Why is a discount-broker like Zerodha entering into the mutual funds business and is it a good idea for a broker?
Priyanka N made post

Why is a discount-broker like Zerodha entering into the mutual funds business and is it a good idea for a broker?

Answer
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NISHA Nayak answered.
7 months ago


That is correct. Zerodha is planning to enter the mutual fund industry and has applied to SEBI for a MF license. Obviously, Zerodha has the maximum number of registered active customers in broking today and they might be looking to make the best of this network of customers. What the company has stated is that they would prefer to focus on originating just passive funds like index funds and predominantly index ETFs so that customers can have dedicated portfolios to invest according to their return requirements and risk appetite. Currently, they are quite active in distributing direct mutual funds plans to their existing customers.