Zerodha Applies For Mutual Fund Business License

Financial services company Zerodha has applied for an asset management company (AMC) license, said CEO and founder Nithin Kamath on Thursday.

"To grow the capital market participation from the current 1.5 crores and address those who currently don't invest (Millenials), we think mutual fund as a product needs to be reimagined. So yeah, we have just applied for an AMC (Mutual fund) license," Kamath said in a tweet.

At present, the discount broking firm allows clients to directly invest in mutual funds through its app Coin.

In an interview, Kamath had told ETMarkets.com that Zerodha was planning on introducing new products in the mutual fund and ETF (exchange-traded funds) space "which are not around right now."

Zerodha is known for its competitive business strategy and gained popularity in broking services with its discount pricing model. As of 2019, it is the largest retail stockbroker in India in terms of the active customer base.

In 2015, became the first Indian stock broker to offer brokerage and commission-free equity investments.