Zerodha Fund House, in a partnership with smallcase, observed remarkable growth, reaching over Rs 1,000 crore in Assets Under Management (AUM) within a span of just 40 days, with the initial Rs 500 crore milestone achieved three months prior. This growth signifies increased investor trust in index-based investment products, as mentioned by Vasanth Kamath, Founder and CEO of smallcase, who expressed gratitude for the positive reception.
Following regulatory approval from SEBI, Zerodha Fund House entered the mutual fund sector with the introduction of passive funds in October 2023. This move came after Zerodha established a joint venture with smallcase, a wealth management firm backed by Amazon, in April of the previous year to develop an asset management company. Currently, the mutual fund industry comprises 45 players managing assets exceeding Rs 50 lakh crore, highlighting the competitive landscape and scale of operations in the market.
On a different note, the Initial Public Offering (IPO) of SRM Contractors experienced significant interest, with a subscription rate of 86.57 times on the final bidding day. The IPO, valued at Rs 130.20 crore, garnered bids for 3,75,705,680 shares against the 4,340,100 shares on offer. The high demand was evident across investor categories, with non-institutional investors subscribing 214.93 times, qualified institutional buyers 59.59 times, and retail investors 46.97 times. The IPO, consisting of a fresh issue of up to 6,200,000 equity shares priced between Rs 200-210 per share, showcases strong market interest and appetite for new offerings.
Furthermore, gold prices surged, aiming to achieve their best month in over a year, supported by robust safe-haven demand, expectations of US interest rate cuts, and continued central bank purchases. Spot gold rose to $2,204.99 per ounce, representing an approximately 8% increase this month, marking a second consecutive quarterly rise. Despite concerns about inflation running higher than desired by policymakers, experts such as Everett Millman, Chief Market Analyst at Gainesville Coins, point out that the current momentum in gold valuations extends beyond inflation expectations, highlighting the multifaceted factors driving the precious metal's performance.