Zerodha Coin (coin.zerodha.com) is a dedicated platform from the Zerodha for investing in direct mutual funds in India.
The Zerodha coin app is easily available on both mobile platforms – Android and iOS – as well as on the web also. With the accessibility of Zerodha Coin, you have the facility to invest in Direct Mutual Funds. In this compelling industry, Zerodha is not getting any commission from AMC. They have a tie-up with more than 30 AMCs to distribute direct Mutual Funds.
In the nascent stage, Zerodha Coin was a paid service. As per notice from Zerodha, dated August 24, 2018, the trading is absolutely free to invest in Mutual Funds. All your Mutual Fund holdings will stay in Zerodha Demat Account. To avail of this service, the Zerodha Demat account is mandatory.
Zerodha recently removed depository charges also. With that when you redeem your mutual fund you don’t need to pay depository redemption charges which was Rs 8 + Rs 5.50.
You can add more value to your knowledge base on mutual funds by subscribing to their official Youtube channel:
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.
As you have the Zerodha coin app on your mobile phone, you have accessibility to invest in Mutual Funds whenever you want.
If you like to start investment with Zerodha Coin, Please leave your information here and Zerodha representative is going to contact you ASAP.
Last updated on 31st Jan 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.
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.
Zerodha Coin has a number of advantages while considering the other brokers in this industry:
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.
To change your investment platform from IL&FS DEMAT to Zerodha, the primary step to follow is to download, print and fill out the IL&FS closure letter.
You are required to send both filled forms (IL&FS closure letter & Demat application) to the below Zerodha’s address:
#153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase, Bangalore – 560078
Your Zerodha DEMAT account will be opened within 3-4 working days of receipt of your forms by the company. The closure of the IL&FS DEMAT account can take up to 15 working days as per the company’s policies.