Zerodha Life Cycle Fund 2056: New Mutual Fund Launched
By ThePip Desk
Zerodha Mutual Fund unveils ‘Life Cycle Fund 2056’, an open-ended scheme with a structured exit load. Learn about NFO, investment details, and exit charges.
Zerodha Mutual Fund has submitted an offer document to SEBI for its new open-ended scheme, the ‘Zerodha Life Cycle Fund 2056’. This filing initiates the process for a new investment product designed for long-term capital appreciation.
The New Fund Offer price for this scheme will be Rs 10 per unit during the NFO period. The fund aims to collect a Minimum Target Amount of Rs 10 crore. Investors can begin with a minimum application of Rs 100, with any amount accepted thereafter. There will be no entry load for this scheme.
The scheme implements a structured exit load based on the duration of the investment. For withdrawals made up to one year, a 3% charge applies. If the investment is redeemed after more than one year but within two years, the exit load reduces to 2%.
Furthermore, redemptions between two and three years will incur a 1% exit load. Significantly, no exit load will be charged for investments held for more than three years. The scheme offers only a growth option for investors.
Understanding the Fund’s Investment Approach
The primary objective of the ‘Zerodha Life Cycle Fund 2056’ is to deliver a goal-based investment solution. It seeks to generate long-term capital appreciation by strategically investing across a diverse range of asset classes.
The fund employs a pre-determined maturity and a dynamic glide path throughout its product lifespan. Initially, the fund maintains an aggressive investment stance across its portfolio. As the target date approaches, it automatically shifts towards a more conservative, debt-heavy allocation, specifically designed to protect capital as the scheme nears its maturity.
The fund’s diversified portfolio includes investments in Equity, Debt, InvITs, ETCDs, and Gold/Silver ETFs. This broad allocation aims to capture growth opportunities while managing risk.
The performance of the ‘Zerodha Life Cycle Fund 2056’ will be benchmarked against a composite index. This benchmark comprises 65% Nifty 200 TRI, 5% Domestic prices of Physical Gold, and 5% Domestic prices of Physical Silver. The remaining 25% of the benchmark is accounted for by the CRISIL 10 year Gilt Index.