Zerodha Fund House introduces target-date investing to Indian investors
FinTech BizNews Service
Mumbai, 19 June 2026: Zerodha Fund House today announced the launch of its Life Cycle Fund series, becoming the first asset management company in India to offer target-date maturity funds.
Each Life Cycle fund is structured around a specific maturity year, called the target year and invests across a mix of asset classes including equity, debt and commodities like gold and silver. The portfolio follows a pre-defined asset allocation that shifts systematically from a growth-oriented (higher risk) allocation in the early years to a more conservative allocation (lower risk) as the target year approaches. This means an investor in a Life Cycle fund today holds a meaningfully different portfolio from what they will hold after 10 years. The shift happens automatically, based on a pre-defined asset allocation path, without requiring any action from the investor.
The Zerodha Life Cycle fund series follows the philosophy of simple, rule-based investing. The series comprises two maturity variants - the Zerodha Life Cycle Fund 2036, which matures in 10 years and the Zerodha Life Cycle Fund 2041 which matures in 15 years. Over time, additional schemes with different/varying maturity years will also be introduced, ensuring investors at every life stage have a fund built around their timeline.
On the equity side, the fund aims to track the Nifty LargeMidcap 250 index. For the debt exposure, it invests in Indian government securities (G-secs) across different durations. It also takes some commodities and arbitrage exposure.
Globally, target-date funds have assets of over $4 trillion and serve as the default retirement investment vehicle for millions of investors. This same concept is now available in India in a simple, transparent, goal-based structure designed as Life Cycle funds.
Talking about the fund launches, Vishal Jain, CEO of Zerodha Fund House, said, “The mutual fund industry has historically been organised around products. We believe the next phase of investing will be organised around goals. Target-date funds, as a category, have transformed long-term investing globally, and we're excited to introduce something similar to Indian investors for the first time. We believe it has the potential to become the default long-term investment option for a generation of Indian investors"
Vaibhav Jalan, CBO of Zerodha Fund House, said, “Indian mutual fund investors now have a multi-asset fund that is built around a finish line. You name your target year and the fund aims to build your wealth all the way to that date. Whether it is your child's education, buying a home, or saving for retirement - Life Cycle funds keep your asset allocation on track and aligned with your target year.”
The funds would be classified as equity for taxation purposes throughout their lifecycle, allowing investors to benefit from long-term capital gains tax treatment. There is no lock-in period; investors may exit at any time subject to applicable exit loads. The minimum investment amount is ₹100. At maturity, investors have full flexibility over their investments. They may choose to withdraw, or remain invested as the fund may be merged with the nearest maturity Life Cycle fund in accordance with the regulations. The New Fund Offer (NFO) for both funds opens on June 19, 2026 and closes on July 7, 2026.
