India's largest stock broker, Zerodha Broking Ltd., has formed a joint venture with fintech platform Smallcase for a foray into the mutual fund business.
Nithin Kamath, founder and chief executive officer at Zerodha, confirmed the development in a tweet on Wednesday.
While awaiting the final approval of our AMC (mutual fund), we asked if we should build it ourselves or collaborate. Given the 6+ years of experience that @smallcaseHQ has in building investment products, it made perfect sense to create a joint venture (JV) to build the AMC. 2/3
Kamath said that Smallcase, which offers a basket of stocks and ETFs for investment, will help Zerodha create "simple, low-cost passive mutual fund products for India" as part of the asset management company.
Smallcase counts Zerodha as well as Amazon.com Inc. among its investors and is led by Vasanth Kamath.
"The opportunity to increase capital market participation for retail investors is massive, and we strongly believe that mutual funds will continue to accelerate this trend with the right mix of products, solutions, and technology," Vasanth Kamath tweeted.
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