Zerodha Coin is a dedicated platform by Zerodha for investing in direct mutual funds in India. With the accessibility of Zerodha Coin, you have the facility to invest in Direct Mutual Funds. The discount broker has a tie-up with more than 40 AMCs to facilitate customers to invest in direct plans. Coin by Zerodha is a flagship platform where users can buy direct funds completely free with no brokerage or commission charges. The platform is available in the web and mobile versions. One can access web platform (coin.zerodha.com) on any compatible browser through login with Kite and its coin mobile app is available on both the platforms – Android and iOS. Walkthrough with the complete Zerodha Coin review including its charges, features, demo, and pros and cons.
Prior to investment, every investor has a key question that Why to invest in mutual funds with Zerodha coin? Then its answer is pointed below;
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Investment in MF with Coin can be done either through the web or mobile applications. Here’re the steps to invest with Zerodha coin;
You can add more value to your knowledge base on mutual funds by subscribing to their official Youtube channel where you can easily access the coin product demo video available.
Earlier, the brokerage firm was charging Rs. 50 every month regardless of your investment amount but in August 2018, the broker has made the platform completely free, thus, now Zerodha coin is a completely free platform available at zero charges.
Zerodha Coin has been advertised as a trademark for Direct Mutual Fund Investment. Although, the company has launched a separate Mobile App for Mutual Fund investors for different mobile platforms by the name of Coin by Zerodha. Android users can install it from Google Playstore and iOS users can get the app from the App store.
As you have the Zerodha coin app on your mobile phone, you have accessibility to invest in Mutual Funds whenever you want.
Zerodha Coin came as a game-changer in the mutual fund industry with no subscription charges to invest in direct mutual funds. Unlike regular plans where investors have to pay hefty commission charges, there’re no such requirements on the coin which ultimately benefits end beneficiaries means investors. Further, a wide range of schemes portfolio, easy to use, investment on fingertips on coin app, etc. are the key advantages to choose Coin by Zerodha platform for MF investment.
Last updated on 2nd Jul 2020
Describe the difference between Direct and Regular Mutual Funds?
On the behest of SEBI in 2013, it was made mandatory for the Asset Management Companies to offer Direct Mutual Funds in which investors can invest in the scheme without involving any brokers, agents or distributors. This resulted in the non-payment of any commission to the aforementioned entities.
From that period, the convoluted process of Mutual Funds was bifurcated into Regular & Direct Plans.
Being an investor, you can select the investment scheme according to your financial requirements, i.e., Regular or/and Direct Plan. Both plans seem identical: your money will be invested in the same fund, managed by the same fund manager, the fund will have the same risk. So, what’s the difference between direct and regular mutual funds?
The critical difference is of the intermediary involved in both schemes.
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.
In Regular plans, distributor charges commission of 1.5% (Approx), upfront, and 1%(Approx) every year from your investments. This commission will start from day one of your investment until 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.
Below discussed are the vital points in favor to choose Zerodha Coin for Mutual Fund Investment by you:
Zerodha offers Coin as a free service to the investors. The investors can invest in more than 30+ AMCs in Direct mutual fund schemes and manage a single login for all your mutual fund investment.
In this cut-throat competition, none of the other brokers are providing this free facility. Considering the operations of other brokers in the market, they provide a Free Mutual Fund Account for investment in Regular Plans with them, for which the investor has to pay huge commissions. The broker gets an extra commission paid by the investors as the reward from AMC.
If you want to save the broker's commission then the direct mutual fund is the only solution for you.
The primary step to follow to invest with Zerodha Coin is to initiate Zerodha Mutual Fund Account along with Zerodha Demat Account.
If you already have a trading and demat account with Zerodha, you can log in into Coin. User ID and password will be the same as your Kite credentials.
Investors can preset buy or sell orders of mutual fund units based on a particular NAV price. This is called a 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 the 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.