Zerodha Multi Asset Passive FoF

1. What is the Zerodha Multi-Asset Passive Fund and how is it different? 
   It is a 4-in-1 fund that invests in a pre-defined approach, across 3 asset classes of equities (large and mid cap), gold, and debt. Unlike an index fund that tracks one index, this fund gives you a diversified portfolio in one investment, making it a simpler way to achieve asset allocation and diversification.
   
   

2. Why should I invest in this 4-in-1 fund instead of buying separate funds myself? While you can buy separate funds that track the four different segments, this fund offers three key advantages:

   • Simplicity: You only need to track and manage one fund instead of four.

   • Auto-Rebalancing: The fund automatically* buys and sells the underlying assets to maintain its exposure of close to 30% in largecaps, 30% in midcaps, 25% in Gold, and 15% in Debt allocation, a task you would otherwise have to do manually.

   • Tax Efficiency: The internal rebalancing done by the fund does not trigger any capital gains tax for you. You are only taxed when you decide to redeem your units of this fund.
     
     

3. What does "Auto-rebalancing*" mean? 
   Auto-rebalancing means the fund manager will periodically adjust the portfolio to bring it back close to its original 30:30:25:15 allocation. For example, if equities (large and midcaps) perform very well and become 65% of the portfolio, the fund will automatically sell some equities and buy more of the other assets to return close to the 30:30 approach . This process does not require any action to be taken by the investor.
   
   

4. Who is this fund most suitable for? 
   This fund is designed for a wide range of investors. It is ideal for anyone who feels overwhelmed by too many fund choices and wants to simplify their investing journey or anyone looking for a simple, hands-off, only-fund approach to build a long term portfolio.
   
   

5. What is the minimum amount I can invest? 
   You can start investing in this fund with as little as ₹100. You can make a one-time (lumpsum) investment or set up a Systematic Investment Plan (SIP) once the fund reopens, to invest a fixed amount regularly, which is a disciplined way to build wealth over the long term.
   
   

6. What is the minimum amount I can invest?
   The minimum investment amount for Zerodha Multi-Asset Passive FoF is ₹.100
    

7. How will the performance of the scheme be benchmarked?
   The performance of the scheme is benchmarked to a composite benchmark 60% Nifty 200 TRI + 15% CRISIL 10 year Gilt Index + 25% Domestic prices of Physical Gold. The composition of the benchmark is such that it is most suited for comparing performance of the scheme.
   
   

8. Is the Zerodha Multi-Asset Passive FoF suitable for first-time investors?

It may be suitable for investors looking to gain exposure to all asset classes without having to manage multiple funds and may have a very high risk appetite.

9. What are the risks associated with the different asset classes (equity, debt, and commodities)?

The fund is exposed to the inherent risks of each asset class :

• Equity Risk: Market volatility and price fluctuations.

• Debt Risk: Interest-rate risk (rising rates hurt bond prices) and credit risk (issuer default).

• Commodity Risk: Price fluctuations in commodities like gold and silver.
  
  

10. How can I invest in Zerodha Multi-Asset Passive FoF?
    The Zerodha Multi- Asset Passive FoF is available on Zerodha Fund House WhatsApp Coin by Zerodha, Groww, Kuvera, Paytm Money, IND Money, CAMS Online, MFU and MFC and other such platforms.
    
    

11. What is the Total Expense Ratio (TER) for this fund?
    The Total Expense Ratio (TER) will be available once the fund reopens for subscription.
    
    

12. What is the Exit Load for this fund?
    There is no exit load applicable on the Zerodha Zerodha Multi-Asset Passive FoF
    
    

13. How will my investment in this fund be taxed?
    
    Assuming the investment is taxed as a hybrid fund:

    • Long-Term Capital Gains (LTCG): Applicable if the holding period exceeds 24 months; taxed at 12.5%.

    • Short-Term Capital Gains (STCG): Applicable if the holding period is 24 months or less; taxed as per the investor’s applicable income tax slab rate.
      
      

14. What is the current NAV of Zerodha Multi-Asset Passive FoF?
    The allotment NAV during NFO is fixed at Rs 10, subject to stamp duty. NAV on a daily basis will be available once the fund reopens for subscription.
    
    

15. What is the lock-in period of Zerodha Multi-Asset Passive FoF?
    There is no lock-in period for the Zerodha Multi-Asset Passive FoF

*The description of "Auto-rebalancing" is for illustrative purposes only and reflects the fund's intended strategy.The actual allocation adjustments may vary based on various factors and may not strictly adhere to the stated percentages or methodology. Investors should refer exclusively to the SID/KIM for comprehensive details about the scheme.