What Do The Zerodha Life Cycle Funds Actually Do With Your Money?
When you invest in Zerodha Life Cycle funds, you know precisely where your money goes, not just in year one, but every year until maturity. This blog lays that out in full for both Zerodha Lifecycle Fund 2036 (10 years to maturity) and Zerodha Lifecycle Fund 2041 (15 years to maturity).
These funds invest across a mix of asset classes including equity, debt and commodities like gold and silver. On the equity side, the fund aims to track the Nifty LargeMidcap 250 index. For the debt exposure, it invests in Indian government securities (G-secs) across different durations. It also takes some commodities and arbitrage exposure. It follows a pre-defined asset allocation that shifts systematically from a growth-oriented (higher risk) allocation in the early years to a more conservative allocation (lower risk) as the target year approaches.
Here's the allocation schedule proposed to be followed for both the 2036 and 2041 maturity variants, year by year as per the asset allocation defined in the scheme document :
Zerodha Life Cycle Fund 2036
Allocation Schedule*
| Year | EquityNifty Large Midcap 250 Index | CommoditiesGold & Silver ETFs | DebtGovernment Securities | Arbitrage |
|---|---|---|---|---|
| 2026 to 2031 | 50% to 65% | 0% to 10% | 10% to 20% | 10% to 20% |
| 2031 to 2033 | 35% to 50% | 0% to 10% | 25% to 30% | 20% to 35% |
| 2033 to 2035 | 20% to 30% | 0% to 10% | 25% to 30% | 35% to 45% |
| Maturity year | 10% to 20% | 0% to 10% | 25% to 30% | Up to 50% |
Zerodha Life Cycle Fund 2041
Allocation Schedule*
| Year | EquityNifty Large Midcap 250 Index | CommoditiesGold & Silver ETFs | DebtGovernment Securities | Arbitrage |
|---|---|---|---|---|
| 2026 to 2031 | 70% – 80% | 0% – 10% | 10% – 20% | 0% |
| 2031 to 2036 | 50% – 65% | 0% – 10% | 10% – 20% | 10% – 20% |
| 2036 to 2038 | 35% – 50% | 0% – 10% | 25% – 30% | 20% – 35% |
| 2038 to 2040 | 20% – 30% | 0% – 10% | 25% – 30% | 35% – 45% |
| Maturity year | 10% – 20% | 0% – 10% | 25% – 30% | Up to 50% |
These funds may be suitable for someone who wants a disciplined, tax-efficient, structured approach to investing without actively managing their portfolio. You pick your target year, you stay invested, and the funds take care of the rest.
Throughout their lifecycle, the funds are treated as equity for taxation purposes. You can start investing in them with an amount as low as ₹100. At maturity, investors have full flexibility over their investments. They may choose to withdraw, or remain invested as the fund may be merged with the nearest maturity Life Cycle fund in accordance with the regulations.
* Please note that:
- Exposure to Gold ETFs shall be at a maximum of 5% of the AUM.
- Exposure in debt instruments shall be limited to AA & above rated instruments with residual maturity less than the target maturity of the schemes.
- This allocation schedule is prepared solely for the purpose of representing the indicative glide path of the scheme's asset allocation. The allocation ranges indicated herein are derived from, and must be read in conjunction with, the asset allocation table as set out in the Scheme Information Document (SID) of Zerodha Life Cycle Fund 2036 & Zerodha Life Cycle Fund 2041 .
- The SID of Zerodha Life Cycle Fund 2036 & Zerodha Life Cycle Fund 2041 is the definitive and governing document for all purposes. In the event of any conflict, ambiguity, or inconsistency between this allocation schedule and the SID, the asset allocation table as specified in the SID shall prevail in all respects. This allocation table does not, in any manner, amend, modify, or supersede the SID or any other scheme-related document.
- Investors are advised to refer to the SID and the Key Information Memorandum (KIM) of Zerodha Life Cycle Fund 2036 & Zerodha Life Cycle Fund 2041 for complete details on asset allocation, investment objectives, risk factors, and other scheme-specific information before making any investment decision.
- The exposure mentioned above is only an intended illustration and the actual exposure may vary depending on various factors.
Disclaimer - Please note that this article or document has been prepared on the basis of internal data/ publicly available information and other sources believed to be reliable. The information contained in this article or document is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party in any manner. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article or document.
The Product(s) are not sponsored, endorsed, sold or promoted by NSE INDICES LIMITED (India Index Services & Products Limited (“IISL”). NSE INDICES LIMITED does not make any representation or warranty, express or implied, to the owners of the Product(s) particularly or the ability of the Nifty LargeMidcap 250 Index to track general stock market performance in India. The relationship of NSE INDICES LIMITED to the Issuer is only in respect of the licensing of the Indices certain trademarks and trade names associated with such Indices which is determined, composed and calculated by NSE INDICES LIMITED without regard to the Issuer or the Product(s). NSE INDICES LIMITED does not have any obligation to take the needs of the Issuer or the owners of the Product(s) into consideration in determining, composing or calculating the Nifty LargeMidcap 250 Index. NSE INDICES LIMITED is not responsible for or has participated in the determination of the timing of, prices at, or quantities of the Product(s) to be issued or in the determination or calculation of the equation by which the Product(s) is to be converted into cash. NSE INDICES LIMITED has no obligation or liability in connection with the administration, marketing or trading of the Product(s).
Published on 19th Jun, 2026