If you add GST (18%) to the coin subscription fee & AMC fee the total outgo is = 900 * 1.18 = 1062!
I am an absolute newbie to investing, trying to learn a few things from the forums and my husband. I opened an account with Zerodha, primarily to invest in Mutual Funds and the Coin platform looked interesting initially.
But on careful analysis, it seems more expensive for beginners, just as the calculations shown above. As I have said that I opened the account primarily for Mutual Fund investment.
Currently I have a budget of 10,000 for 2 monthly SIPs. With the calculations given above it would be better for me to go for normal route, than use Coin.
The free limit of 25,000 given in Coin platform is too less (it will exhaust in no time, in my case in just 3 months!!). It simply means that the creators of the platform do not want people to try it and become acquainted with it! If they wanted people to try it then the free limit would have been at least 10 times of the current limit!
With a limit like 2.5 Lakh an investor would have gained enough experience & hopefully enough profit so that he/she wont mind the 50/- per month fee, after he exhausts the limit.
I also think that the 50/- per month fee is on the higher side. I urge the Nitin and creators of Coin to reconsider the free limit and monthly fee.
I wonder, how many people actually have subscribed with the current limit and fee structure! Can some stats be published?
PS: For now I have started SIPs for direct funds, by logging into the AMC websites. That is bit cumbersome because as times passes on number of funds invested in would increase and it will be a hassle to manage one account for each of the funds. This is the main problem that Coin tries to fix!
The charges that you have mentioned are still very less compared to the commission that we would have got if you were investing in a regular plan. This charge of Rs 1062 per year is the only revenue that we would till the time you are holding your investments on COIN. If this was a regular plan then the commission would have been compounded every year and the commission paid out would have been more if you are holding the schemes for a longer period.
In your scenario, the threshold of Rs 25000 will exhaust soon but there are many people who would do a SIP of Rs 1000 or Rs 2000 per month so it works out perfect for them.
If you have to invest in one or two AMCs then it’s ok otherwise its very difficult to manage the ID password n tracking the funds. Anyway happy investing.
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No company can survive for free. There must definitely be a catch to it. There has to be some revenue generating model which you are either not aware of or not sharing. Maybe you check with them again in case you are unaware of the same.
These are charges for dematerialising any security ( shares, mutual funds or bonds) to your demat account as mentioned in our tariff sheet (in your demat application form which you have sent to us) and in this support portal link. Also, I guess my colleague has called and helped you with your query. If you have any further doubts then please communicate with him directly or on our support portal.
@astuter, In India there are hardly 500ish registered investment advisors. And ya, they don’t like paying them either. With every platform hawking, a robo advisory product the people consulting advisory will further go down. I know smart people who signup on Scripbox, Fundsindia use their Robo tool and buy those funds direct.
Secondly, the minimum ticket size for an AIF is over 1 Cr and for a PMS it’s 25 lakhs. So ya, this doesn’t hold water. Btw, who needs PMS for mutual funds, the fund already has a fund manager. So essentially this is some premium quality BS.
@Umar - I agree with your points…PMS and AIF does not appeal to mutual fund investors (atleast the retail category) @astuter - good luck with your investments … hope they are safe
To NITHIN and TEAM Zerodha, Its totally wrong to DEBIT Rs 295 for each MF thata person is holding , you were / are projected zerodha as COMMISSION free platform…seems that it was / is Wrong
This 25000 limit is based on investment value or current NAV? So, if the mutual fund purchased few months ago for 24000 becomes 30000 based on today’s NAV, then also we will NOT be charged 50 rupees per month, right?
@nithin Can this Q be answered? Is this charged by BSE StarMF? Is there any other platform that provides similar services as BSE StarMF without such charges? If so, then why BSE StarMF? Can Coin change to those providers?
What is the MF DP Charges xxxx STT No:xxxxxxxx under cost center Star MF shown in statement?
If its not BSE’s, then is this additional charge Zerodha is levying apart from Coin subscription charges?
