Rs 50/month or any hidden charges ?

Zerodha
1

Hi
I want to move my 2 cr portfolio from icicidirect to Zerodha. Will the maximum annual charges be Rs 600 or is there anything else to pay - regardless of transaction value?
Thanks

2

There will be minimal brokerage charges and taxes.

Check this link to know the charges.

https://zerodha.com/brokerage-calculator

1 Like
3

Nothing.

4

I am not discouraging you from switching to Zerodha. But when someone’s portfolio grows bigger, he should not look for just cost as the deciding factor.

You must be having a LAS account with ICICI where you must have pledged scripts to open an overdraft account, from which you can withdraw money as and when needed? Max LAS a/c limit is Rs 20 lakh for pledging equity. And interest rate is 10.75% p.a. which is quite less compared to loan interest rate in the market. So if you borrow money from this overdraft a/c for a couple of days you pay quite a minimum amount as interest. You can use that money as you wish. It acts as your emergency fund.

I don’t know if Zerodha has such facility. If it’s there then good.

But if not, then you should keep your long term investments of Rs 40 lakh in ICICI Direct (and open a LAS overdraft a/c if you don’t have it) and then you can move your remaining portfolio to Zerodha.

This is my opinion. You know what’s best for you.

5

If you have 2crores of mutual funds with ICICI, they will be in regular funds. The first thing you need to do is switch them to direct. You can end up saving upto 1.5% of this 2 crores every year immediately or Rs 3lks.
Switching will require you to interact with the AMC directly. The better way to do this would be to exit them and buy all these funds afresh on Coin, provided you don’t have any taxation implication.

Rs 50/month is Coin (our direct MF platform) charges and that’s all you have to pay us. There is an AMC charge for demat account of Rs 300/year. But with this demat, you can also hold stocks etc. To shift stock portfolio from ICICI to Zerodha, ICICI I think charges Rs 30 or 0.03% whichever is higher as DP transfer charges. But if you give them an account closure form, they will have to move the stock for free to whichever demat account you want.

6

Hey @nithin,

In this article, you have mentioned LAS business will soon go live on Zerodha.

  1. How soon can we see this feature made available on Zerodha?

  2. Also, what would be the interest rate? HDFC gives you 10.75% p.a. interest rate (until July it was 10.25%, they increased it after the recent hike in RBI repo rates). So if you are using that borrowed money for a couple of days, it acts as quite a handy emergency fund.

  3. Zerodha being an NBFC, would the interest rate would be higher compared to HDFC bank?

  4. One of the reasons I have not shifted from HDFC Securities to Zerodha is because I am not sure whether LAS is available with Zerodha or not.

  5. Also, is it possible to shift my portfolio to Zerodha and pledge it and open the loan against security overdraft a/c with my bank if that is providing me a better interest rate?

Please throw some light on it.

7
  1. Internally we have already started giving out. Maybe in next 4 weeks.
  2. hmm… 10.75 is tough. NBFC’s today are doing in the range of 13 to 16%. We’d be in that range. Will check on this HDFC thing.
  3. Yes
  4. Will come shortly.
  5. Hmm… don’t think it is possible. Also banks can give out loan of only upto 20lks on LAS.
8

I am aware of it. If you read my previous comment on this thread, this is the reason I have suggested him to leave his long-term bets worth Rs 40 Lakh with ICICI Direct and pledge it for a LAS overdraft account of Rs 20 Lakh, as ICICI interest rate would be much lower. And the remaining he can shift to Zerodha if he wants to.

How HDFC LAS overdraft current overdraft account works is -

It’s a current account linked with your customer ID so when you login to net banking, you could see this account in the list. Whenever you need funds, in an emergency situation, say during month ends, or some financial emergency, or say market is down and you need to buy in dips, you can instantly transfer the needed amount from this LAS current account to your Savings a/c and use it as you wish to. You can have 20 lakh maximum for this LAS account if equities are pledged. If debt funds are also pledged, the maximum amount can go till 1 Cr.

Now, say you needed Rs 50,000 on 25th of the month to put in market dips. Knowing on 30th you will get your salary or get a payment from your client for a project, you transfer funds from this LAS current account to your savings account and use it as you wish. Every day, it computes interests and keeps adding at the rate of 10.75% per annum. So for 5 days interest would be - (((10.75/100)*50,000)/365)*5, which is quite a nominal interest amount.

In short, your personal loan in readily available with you 24x7 @ 10.75% interest p.a. Such a handy feature this is.

The AMC for the LAS account is Rs 1400.