Zerodha Coin Review

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.

1. Regular Mutual Fund plans have the middlemen (intermediary) in between the investors and Asset Management Companies (AMCs). This means that the investor has to pay commission or advisory fees to AMCs, which results in a rising expense ratio.
2. Conversely, Direct Mutual funds don't allow any middlemen (intermediary) in between the investors and Asset Management Companies (AMCs). In this plan, the investor doesn’t have to pay any brokerage amount which results in a lower expense ratio.

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.

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Coin is an excellent platform for investment in mutual funds due to the following reasons:

• Commission-free (Upfront or trail) investment in direct plans.
• Dematerialized or electronic safety of mutual fund holdings.
• No DP charges on redemption of mutual fund units.
• Start, pause, modify, and cancel your investment anytime.
• Start mutual fund SIP or invest lumpsum amount instantly using UPI.
• Track your mutual fund portfolio on Coin anytime.
• Pledge your mutual funds holdings in Demat form for a loan.
• Access reports like capital gain statement, P&L, etc.

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Zerodha offers Coin as a free service to the investors. The investors can invest in more than 40+ 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.

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Yes, Zerodha Coin is India’s safest mutual funds platform as all the mutual fund units bought through coin are credited to the Zerodha Demat Account with CDSL. Hence, your MF investment in direct plans will be kept safe and secure.

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Zerodha Coin app provides multiple search filter options to customers to search for the right scheme in line with their risk appetite and investment goal. There are the following filters available on the Coin app;

• Asset Management Company (AMC) or fund house.
• Scheme type; Equity, Debt, and Hybrid.
• Minimum investment amount.
• Compounded Annual Growth Rate (CAGR).
• Type of reinvestment; Dividend payout, growth, etc.

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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.

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Nil, Yes likewise free mutual funds investment, Zerodha facilitates customers to sell mutual funds holdings from their Demat account at ₹0 DP charges. Earlier, the broker was charging ₹5.5 DP charges but thereafter, in May 2019, the broker has removed the DP charges and started offering free redemption facility.

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Zerodha Coin has a number of advantages while considering the other brokers in this industry:

• The facility of Direct Mutual Funds: You can easily invest in all mutual funds via Zerodha Coin and most interestingly, you don’t have to pay any commissions to any intermediary. Hence, you can enjoy a higher return on investment.
• Fungible Funds: All of you purchased mutual funds that go into your Demat account that is fungible in nature.
• Single Dashboard: Your every investment done in stocks, bonds, mutual funds, ETF, etc., is generally visible on the same dashboard.
• Flexible SIPs: Invest accordingly to your financial goals – initiate, pause, edit and stop your SIPs as per your preference.
• Conditional SIP: NAV is a critical part of mutual funds, so Zerodha Coin allows its investors to go through the NAV of every fund and start their SIP according to it. For example, you may want to invest Rs.5000 when the NAV reduces 15% from the current level.
• It's 100% Free - Investment is free as well as on redemption Demat transaction charges are also free.

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If you have opened a DEMAT account with Zerodha, automatically, your Coin application will be activated.

For all those investors, you have been with Zerodha before September 15, 2015, their DEMAT account would be with IL&FS.

Firstly, the investors are required to close their DEMAT account with IL&FS. And then, apply for the Zerodha DEMAT account to initiate the working of Zerodha Coin.

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Coin for Zerodha mobile app allows easy and hassle-free online mutual funds investment and redemption/withdrawal at 0 charges.

Steps to withdraw money from Zerodha Coin App:

1. Login to the Coin app on your phone.
2. Click on the “Portfolio” tab where all of your MF investment will be visible.
3. Tap on the fund, from which, you want to withdraw your investment.
4. Scroll down the fund's page and click on the “Redeem” option. The fund redemption page will be displayed showing the total no. of units and the redemption period.
5. In case of partial redemption, enter the no. of units or click on the checkbox for full redemption.
6. Enter the CDSL TPIN to authorize the sale or redemption of mutual fund holdings on Coin.
7. Once done, the funds will be credited to your linked bank account within the settlement period.

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Yes, you need a demat and trading account with Zerodha to undertake investment in mutual funds via coin. Zerodha coin is a free mutual funds platform to invest in direct plans at zero commission. The said platform is only accessible by Zerodha users thus, even if you’ve demat and trading account with any other broker then you won’t be able to invest in mutual funds on Coin.

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Yes, Zerodha Coin is a 100% free mutual funds investment platform that neither charges any brokerage from customers on MF investment nor it charges DP Charges on redemption. If you are the one looking to buy direct plans then undoubtedly, Zerodha Coin is the best platform to invest in thousands of schemes from 40+ big fund houses.

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Coin for Zerodha is the best platform for hassle-free direct mutual funds investment process at nil charges. Check out the process to purchase mutual funds through Coin;

1. Login to the Zerodha Coin platform using Kite login ID.
2. Search your choice of the scheme using different search filters.
3. On the fund page, click on the “Buy Direct” (lumpsum) or “Direct SIP” option.
4. Enter details like investment amount, no. of installments, etc., and submit the mutual fund investment order.
5. Make a payment of the first installment and you have successfully purchased mutual fund units.

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Zerodha Coin is the country’s largest direct mutual fund investment platform that enables users to buy direct funds online from asset management companies without any commission. You can invest in mutual funds with Zerodha coin on either the Coin web platform or the coin mobile app available on Google play store and the App Store.

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1. Login to the Coin platform.
2. Select the scheme using different search filters.
3. Tap on the “Direct SIP” option to start MF SIP or click on the “Buy Direct” option to make a lumpsum investment.
4. Enter the amount of investment, SIP frequency, total installment, etc., and submit the order.
5. Pay the first installment and upon successful payment, your MF investment is done!

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Anyone who want to invest in direct mutual funds through Coin doesn’t need to open coin account. Users just need to open Zerodha Demat Account and access to Zerodha Coin will be available to them to undertake direct MF investment for free. Users can use the Kite user ID and password to activate to the coin Zerodha.

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Yes, Zerodha provides Coin mobile app to allow them to buy mutual funds at their fingertips. Coin app provides the flexibility to users to purchase SIP or lumpsum in mutual funds anytime anywhere on just a few clicks using their mobile phone. Android users can install the app from the Play Store and iOS fanatics (iPhone, iPad) can download it from the App Store.

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Conditional orders are similar to limit orders in stocks which means placing buy or sell mutual funds orders at a specified NAV, therefore, also termed as “NAV-Tracking” orders. These orders can only be placed for the lumpsum investment and not allowed for SIP investment.

Steps to place Conditional Order in lumpsum MF investment;

1. Log in to the Coin platform.
2. Select the scheme, and click on the “Buy Direct” option for lumpsum investment.
3. The order window will be displayed, click on the conditional order checkbox and enter the NAV price.



4. Tap on the “Buy” option to successfully place the order.

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