ZFunds Launches Mutual Fund SIP for People in Rural Areas, Small Towns

ZFunds, a mutual fund distribution network, announced the launch of a Rs 100 daily mutual fund SIP, which is targeted at those who live in rural and small towns.

According to ZFunds, the programme is being launched in conjunction with ICICI Prudential Mutual Fund, HDFC Mutual Fund, and Tata Mutual Fund. In addition, the firm is in talks with a number of other investment companies to expand its product offering. ZFunds hopes to fill a need gap in tier-2, tier-3, and tier-4 cities where people earn on a daily basis rather than a monthly basis with this product.

ZFunds claims that an investment of as little as Rs 100 will enable daily wage earners and small company owners to begin investing with their daily income.

ZFunds has registered over 3,000 daily systematic investment plans (SIPs) on its platform in a short period of time and wants to attain 1 lakh daily SIPs by the end of FY23.

ZFunds is trying to bring MFs to non-metros and smaller regions with roughly 3,200 on-the-ground agents.

Manish and his former Paisabazaar (a PolicyBazaar group company) colleague Vidhi Tuteja founded ZFunds in Gurugram in 2019. Yogesh Yadav, a third co-founder, and CTO joined them recently.

In FY22, the firm generated Rs 2.6 crore in income, with a monthly SIP book of Rs 4.5 crore and assets under management (AUM) of more than Rs 350 crore. The app records an average of 3,000 SIPs per day, with 10-12 new sign-ups per day, according to the co-founder, who also says that ZFunds is profitable at the unit level.