Nithin Kamath, the founder of the Zerodha AMC posted a tweet today announcing about them receiving the final approval for its Asset Management Company business in partnership with Smallcase.
In the twitter post, Nithin Kamath writes, “We just received the final approval for the @ZerodhaAMC we are building in partnership with @smallcaseHQ. Our motivation to start a mutual fund was twofold. The first was that the biggest challenge and opportunity for Indian markets is the shallow participation. Even after all the growth over the last 3 years, we only have maybe 6-8 crore unique mutual fund and equity investors put together.“
We just received the final approval for the @ZerodhaAMC we are building in partnership with @smallcaseHQ.
Our motivation to start a mutual fund was twofold. The first was that the biggest challenge and opportunity for Indian markets is the shallow participation. Even after…
— Nithin Kamath (@Nithin0dha) August 11, 2023
He further added that the company had to bring in next ten million investors, who needed simple products that they could understand and mutual funds were a perfect instrument.
According to reports by MONEYCONTROL, in September 2022, Zerodha received in-principle approval from the SEBI for setting up the AMC. This came after 19 months of applying for a mutual fund licence in February 2021.
Zerodha is one of the country’s largest online brokerage firms and its involvement in the mutual fund might create the possibility of keeping the stakeholders on the hook.
Meanwhile, Nithin Kamath posts on ‘X’ asking to keep an eye out for its new fund offer.
