ZFunds brings US stocks and ETFs to distributors, beyond DIY apps

The platform allows mutual fund distributors and wealth managers to offer international investments as demand grows for products and themes unavailable in India

ZFunds, a business-to-business wealth platform for mutual fund distributors (MFDs) and wealth managers, launched access to US stocks and exchange-traded funds (ETFs) on October 22. Unlike do-it-yourself (DIY) investing apps, the platform enables distributors to onboard clients, guide their investments in international stocks and ETFs, and earn brokerage income.

Founded in 2019 by Manish Kothari and Vidhi Tuteja, ZFunds allows distributors to manage their businesses through a single app, which their clients can also use to invest. Its existing offerings include mutual funds, portfolio management services (PMS), alternative investment funds (AIFs) and fixed deposits.

ZFunds’ US stocks and ETFs at a glance
Company started	2019
Global investing launched	October 2026
Brokerage	0.3% per trade; as low as 0.1% for high value clients
Offering	US stocks and ETFs; UCITS funds soon
Underlying broker	ViewTrade
Tax-compliant forms	Yes. All regulatory and compliance forms provided in ready-to-upload format, including Schedule FA
Who it’s for	Distributors, wealth managers and their clients
Minimum transfer	$100

In a telephonic interview, Kothari tells Vedant Vichare what sets ZFunds apart from other international investing platforms. Edited excerpts:

 

What has been the response since the launch?

The response has been very good. We have opened around 5,000 accounts without any marketing. This shows there is strong demand from both distributors and their clients.

How does ZFunds differ from other platforms offering investments in US markets?

Existing platforms largely follow the DIY model. They do not allow distributors to onboard their own clients and build a business around international stock investments. We are the only platform offering this model.

Do distributors need to be existing ZFunds partners to offer international investments?

No. Distributors can join ZFunds solely to offer international investments. Many of our recent partners have moved from traditional as well as newer platforms. International investing may be their entry point, but once they join, they can offer all our other products.

Why is demand for international investing increasing?

Regulatory restrictions are a major reason. International feeder mutual funds are closed for fresh subscriptions, while the investment ecosystem at Gujarat International Finance Tec-City (GIFT City) is still developing. Investors may be able to buy a GIFT City product through a platform but cannot always redeem it through the same platform.

What are the advantages of investing directly in US stocks and ETFs?

The investment process is much faster once an account is funded. When a customer sells a security, the proceeds are credited to the wallet immediately and can be reinvested straightaway. This is not possible with GIFT City products or mutual funds.

How does the range of investment products compare with what is available in India?

The range is much wider. Investors can buy US-listed gold ETFs, bond and Treasury bill ETFs, and thematic ETFs covering artificial intelligence (AI), semiconductors, clean energy, water and even oncology. They can also invest in country-specific ETFs covering China, Japan and Brazil, as well as emerging markets.

For investors seeking relatively low-risk, dollar-denominated returns through US Treasuries, there is no comparable Indian product.

Who provides the brokerage services, and what products are you planning to introduce next?

We work with ViewTrade. We plan to introduce Undertakings for Collective Investment in Transferable Securities (UCITS) funds next week. This will allow investors to gain exposure to other markets without having to buy US-listed ETFs. Wealth managers are already familiar with the advantages of UCITS funds.

What are the brokerage charges?

Brokerage is typically 0.3 per cent per trade, with most of the revenue going to the distributor. For higher-value customers, the rate can be as low as 0.1 per cent, which we believe is the lowest in the market.

We are not competing primarily on brokerage charges. The distributor or wealth manager provides the service to the customer. At a brokerage rate of 0.1 per cent, we earn very little, if anything.

What are the currency conversion charges?

These are determined by banks and payment partners, not ZFunds. When I transferred my own money through the platform, the currency conversion spread was around 0.6 to 0.7 per cent, which is quite low. The minimum transfer amount is $100.

Can retail investors open accounts directly?

Yes. Retail investors can register through our client app. A member of our team then contacts them to understand their requirements and assigns a wealth manager.

The assignment depends on factors such as the wealth manager’s tenure with ZFunds, number of clients, training completed and location.