Zerodha launched a platform for investing in direct mutual funds in India. The platform is called Coin (coin.zerodha.com). Coin platform is available in the web as well as Mobile App version. Zerodha Coin allows you to invest in Direct Mutual Funds. Unlike other distributors, Zerodha is not getting any commission from AMC. They have tie up with more than 30 AMCs to distribute direct Mutual Funds.
In the initial phase, Zerodha Coin was a paid service. But now, Zerodha made it absolutely free to invest in Mutual Funds. All your Mutual Funds holdings will stay in Zerodha Demat Account. To avail this service, Zerodha demat account is mandatory.
Coin is the Zerodha's trademark for Direct Mutual Fund Investment. The company has launched a separate Mobile App for Mutual Fund investors. With this, you can invest in Mutual Funds on the go.
Features of Coin Mobile App are as follows
If you like to start investment with Zerodha Coin, Please leave your information here and Zerodha representative is going to contact you ASAP.
Direct Mutual funds don't have any middle man commission, so the expense ration is always lower. Let's check this with a live example.
Reliance Money Manager fund with regular plan having expenses .55%, rated 2 stars and return since launch is 8.37% as of April 14th 2017 by valueresearchonline.
Where Reliance Money Manager fund with direct plan having expenses .23% rated 3 stars and return since launch is 9.13% as of April 14th 2017 by valueresearchonline.
This is like investing directly with an AMC except for, you can view your complete portfolio at one place. In Regular plans, distributor charges commission of 1.5%, up front, and 1% every year from your investments. This commission will start from day one of your investment till you redeem your complete investment. So if you are SIP investor investing every month, then you are paying a very big amount as commission to your distributor.
Here are some points in favor to choose Zerodha Coin for Mutual Fund Investment by you
1. Invest in Direct Mutual Fund plans - so no commission charged on your investment.
2. A Single platform to have access to over 31 Asset Management Companies (AMC).
3. The holding of MF in a demat format so can be a pledge for a loan.
4. Since all your holdings are in one place, the nominee of demat can claim the holdings in case of any unforeseen instance.
5. All investment tracked under a single platform so single capital gain statement, P&L.
6. Easy SIP, start-stop whenever you want. Increase or decrease SIP values at will.
Zerodha Coin is a free service. You can invest in Approx 30+ AMCs, Direct mutual fund plans and manage single login for all your mutual fund investment. None of the other brokers are providing this facility. All other brokers provide Free Mutual Fund Account, but allow you to invest only in Regular Plans, where you need to pay high commissions. The broker gets an extra commission paid by you as the reward from AMC. If you want to save broker's commission then the direct mutual fund is the only solution for you.
If you have purchased the funds in DEMAT mode, then ask your broker to give you a DIS slip and fill in the units you wish to transfer, mention your Zerodha DEMAT account number and submit it back to the broker. Within 24 hours, the units get transferred. You can find your Zerodha DP ID Beneficiary ID in Console under Profile.
If your Mutual fund investments are not in DEMAT form then you will have to de-materialize it to move it to Coin.
If you have invested in regular mutual funds - DEMAT or physical form, the best option is to exit those funds and repurchase it again on Coin, instead of dematerializing your regular mutual fund investments.
To invest in Mutual Funds, you need to open Zerodha Mutual Fund Account along with Zerodha Demat Account. If you have a trading and demat account with zerodha, you can login to Coin. User ID and password will be same as your Kite credentials.
Investors can preset buy or sell order of mutual fund units based on a particular NAV price. This is called Conditional Order.Once the price is triggered, the order would be executed. Unlike stocks where price changes every second, the NAV (Net asset value) price of mutual funds changes only once at end of every trading day. Orders placed to buy or redeem a fund are typically executed based on the NAV price of the next trading day.
These orders are good or valid until canceled. An email alert is sent as soon as any conditional order is placed. This will ensure that you don't have to keep checking NAV prices and can run your investments in MF in an auto mode.
Investors can choose from various buying options for Mutual Fund. Such as one-time investment ( lump sum payment ) or systematic investment plan SIP.
SIP or systematic investing plan is when you invest small periodical amounts instead of lump sums. On the Zerodha MF platform, you can start as many SIPs as you want with a click of a button without having to sign any mandate forms.
The DP charges for selling of Mutual fund is Rs 5.5 + GST. While purchasing there are no DP charges applicable. Zerodha also provide recommendations on choosing funds.
Last updated on 9th Jul 2019