Zoroda's strategy for success and challenges in the mutual fund industry

Zoroda's entry into the mutual fund industry presents both opportunities and challenges. While Zoroda won't face the hurdles of excessive fees and high fixed costs that some mutual fund companies have encountered, the passive nature of index funds means lower fees and thinner profit margins. Zoroda's joint venture with small case and its existing direct-to-consumer distribution network provide a competitive advantage. However, the pursuit of scale and the adoption of index funds by Indian investors are crucial for Zoroda's success. Zoroda aims to emulate the success of index funds in the US, where even a small fee on a large asset base can generate substantial revenue. As Zoroda faces the commoditization and fee competition of the passive fund market, only time will tell if their ambitions in the mutual fund industry will be realized.