NFO Alert: Zerodha Fund House Brings Life Cycle Fund Series With 5-Year Target Date | Key Things To Know

NFO Alert: Zerodha Fund House has launched its Zerodha Life Cycle Fund 2031, with this, it has extended its target-date fund series to a five-year maturity horizon. The launch of this fund has come months after the debut of Zerodha Life Cycle Fund 2036 and Zerodha Life Cycle Fund 2041.

For those who are planning to invest in this life cycle fund here are all the details to know about it.

Zerodha Life Cycle Fund 2031

The NFO is structured around specific maturity year, ie 2031. The scheme will invest across a mix of asset classes including equity, debt and commodities like gold and silver.

Asset Allocation

The portfolio comes with a pre-defined asset allocation that shifts systematically from a growth-oriented (higher risk) allocation in the early years to a more conservative allocation as the target year approaches.

Zerodha Life Cycle Fund 2031

With the addition of the 2031 fund, the Zerodha Life Cycle Fund series now spans three maturity variants - 2031 (5 years), 2036 (10 years) and 2041 (15 years) giving investors a shorter-horizon option built around the same rule-based glide path structure as the original two funds. Additional schemes with varying maturity years are planned over time, so investors at every life stage have a fund built around their timeline.

NFO Date

The NFO opened on Thursday, August 27 and will close on September 10.

Equity, Debt Allocation

The fund majorly track the Nifty LargeMidcap 250 Index, and Indian government securities for debt exposure across different durations. "Investing well isn't just about picking the right asset class but also about knowing how much to allocate where, staying invested through market ups and downs, and shifting gears as your goal draws near. The Zerodha Life Cycle Fund series handles this shift for you, so that investing stays simple," stated Vishal Jain, CEO of Zerodha Fund House.

Vaibhav Jalan, CBO of Zerodha Fund House, said, "A lot of financial goals might not sit ten or fifteen years away. A dream car purchase, a milestone birthday trip, a saving kitty for a loan downpayment - these are closer, and they need an allocation that reflects that shorter runway. The 2031 fund is built for exactly that kind of timeline."

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