It is expected that within a year , Zerodha may be able to start its asset management company (AMC). Zerodha has a aim to focus on bringing the overall transaction costs down in it’s discount brokerage business. With this focus in mind ,the firm has plans to launch low-cost funds.
As we know , Zerodha started their journey in 2010 as a “₹20 per order broker” and soon gained popularity as a low-cost player among traders, especially high-volume derivatives traders. Zerodha handles roughly 4 million trades in a single day on the exchanges. Retail investors also found it attractive to invest in the direct option of mutual fund schemes using the “Coin” platform launched by Zerodha. Coin today has assets under management (AUM) of ₹5500 crores.
When Zerodha started its operations, it opted for ILFS Securities Services (ISS) as the depository participant for its client’s securities. Expert says that the success of Zerodha in the asset management business will depend on setting up the right investment team, launching the right product for the right audience at the lowest cost. Right now , It will be unfair to discredit Zerodha’s AMC plans for the tech glitch the customers experience in the broking business.