Zerodha and Smallcase are teaming up to create an asset management powerhouse that will focus primarily on passive mutual funds. With SEBI’s stamp of approval already in the bag, this power couple is taking the investing world by storm. As they wait for the final green light, they wisely decided to team up and combine their strengths. As the saying goes, two heads are better than one – and in this case, the result is sure to be a mutual fund juggernaut!
According to a tweet by Nithin Kamath, CEO and Founder of Zerodha, they had a decision to make while waiting for the final approval of their mutual fund AMC. They could either go it alone or join forces with a seasoned investment product builder. With Smallcase’s impressive track record of 6+ years in the game, the choice was obvious – a joint venture (JV) was the way to go!
Vasanth Kamath, the mastermind behind Smallcase, expressed his enthusiasm about teaming up with Zerodha to bring a fresh wave of investors into the mutual funds world. “Very excited for @smallcaseHQ to partner with @zerodhaonline to help introduce a new generation of investors to mutual funds. The upcoming AMC will be a joint venture between Zerodha & smallcase and will use learnings & shared values from both cos to build an enduring fund house”, he tweeted.
Nithin Kamath has been clear from the get-go about his commitment to launching only passive funds. These investment vehicles are known for their low costs and ability to track an index, producing returns that are in-line with the market.
In a recent interview with ET Markets, Kamath said, “I don’t think there is space for another Nifty ETF or Bank Nifty ETF. We want to put some goal-oriented funds like a retirement fund which is like a targeted-date fund where equity and debt keeps rebalancing every year. Apart from that, there would be other passive products too”