Zerodha Fund House unveils mutual fund industry's first lifecycle funds

The new funds automatically shift asset allocation towards lower-risk investments as the target year approaches

Zerodha Fund House on Friday launched the mutual fund (MF) industry’s first lifecycle funds, offering investors target-date investment options maturing in 2036 and 2041. 

Lifecycle funds are a new category introduced by the Securities and Exchange Board of India (Sebi) in February 2026 in a bid to expand goal-based investment solutions.  

The category was created to help investors align investments with specific financial milestones such as retirement, children’s education or home purchase. 

 

Under the framework, fund managers follow a pre-defined asset allocation path that gradually reduces risk as the target year approaches, eliminating the need for investors to periodically rebalance their portfolios. 

“We believe the next phase of MF 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,” said Vishal Jain, CEO of Zerodha Fund House. 

The two Zerodha schemes will invest in a mix of asset classes including equity, debt and commodities like gold and silver, the fund house said, adding that there will be some arbitrage exposure too.