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A Life Cycle Fund is a mutual fund built around a specific target year - say 2031, 2036 or 2041. The fund invests across a mix of asset classes, starting with a growth-oriented allocation tilted towards equity and automatically shifts to a more conservative allocation as the target year approaches.

Pick the fund whose year is closest to when you need the money. If you have a major milestone around 2031, go with the Zerodha Life Cycle Fund 2031. If your timeline is closer to 2036 or 2041 then you can pick Zerodha Life Cycle Fund 2036 or Zerodha Life Cycle Fund 2041 respectively.

To start with, the Zerodha Life Cycle Fund series comprises: Zerodha Life Cycle Fund 2031, which matures in 5 years from launch, Zerodha Life Cycle Fund 2036, which matures in 10 years from launch and the Zerodha Life Cycle Fund 2041 which matures in 15 years from launch. Over time additional maturity years will also be introduced, ensuring investors at every life stage have a fund built around their timeline.

The fund invests across a mix of asset classes, starting with a growth-oriented allocation tilted towards equity and automatically shifts to a more conservative allocation as the target year approaches.

Here is what the fund actually holds. On the equity side, the fund aims to track the Nifty LargeMidcap 250 Index. On the debt side, it invests in Indian government securities (G-Secs) across different durations. It also holds a small allocation to commodities like gold and silver, and uses arbitrage in the later years to maintain equity tax treatment as the target year approaches.

Yes. This is an open-ended fund, you can redeem at any time. Exit loads apply for the first three years: 3% under 1 year, 2% up to 2 years, 1% up to 3 years, and nil after that.

The fund is treated as equity-oriented for tax purposes throughout its lifecycle. Gains held for more than 12 months are taxed at 12.5% as long-term capital gains. Gains on investments held for 12 months or less are taxed as short-term capital gains as per your applicable tax slab. Applicable surcharge and 4% cess apply in both cases.

Also note that the same equity tax treatment applies whether you withdraw before or after the target year. Internal rebalancing by the fund does not trigger any tax for you. Please consult your tax advisor for your specific situation.

Yes. SIPs are available during the NFO period and on an ongoing basis. The minimum investment is ₹100 - for both SIP and one-time investment.

NPS may be seen as the closest comparison to Life Cycle Funds, since it also adjusts asset allocation over time. However, the differences are structural. NPS is a retirement product with lock-ins and restrictions on withdrawal.

A Lifecycle Fund is an open-ended mutual fund which is built not just for retirement and can be used for other goals as well having varied target maturity years. There is no lock-in, the investor can exit at any time subject to applicable exit loads. In addition, the allocation in a Lifecycle Fund is tied to a target maturity year chosen by the investor, not to the investor's age.

This is exactly what the glide path is designed to address. As your target year gets closer, the life cycle fund progressively reduces equity exposure and increases debt. By the time you are in the final 1–3 years, the majority of the portfolio is in conservative assets, significantly reducing the impact of an equity market fall.

When the fund matures, you have three options.

RedeemWithdraw your entire investment. No exit load applies.

Set up an SWPInstead of withdrawing everything at once, set up a Systematic Withdrawal Plan to receive regular payouts - monthly, quarterly, or at any frequency that works for you. Your remaining corpus stays invested.

Merge Give consent to merge into the nearest available Life Cycle Fund. This keeps your money invested and working, with the next fund's glide path taking over.