AMC SIP vs Coin SIP (Need some clarification on specific cases)

Zerodha Coin - Direct MF
1

I would like to know what are the disadvantages with doing Coin SIP instead of AMC SIP?
I would like to get a clarity on this situation:

  1. Suppose I am doing a Coin SIP in any fund. In case if the funds stops accepting new investments, but existing SIP would be intact as is. In this case will my COIN SIP will be continued or stopped?

  2. The same exact scenario but with step up coin sip. Currently if I want to do a step up in AMC SIP, I need to cancel my current SIP and a start a new SIP with new amount. Will Coin Step Up SIP also work the same way (but automatically) or is there a separate process for brokers directly? If it is the same process then, what will happen if the AMC stopped accepting and my step up time has come (in the same time) ? I see this edge case here and want to get a clarity on this specific case too.

2

Coin SIPs will be stopped if the AMC suspends lumpsum investments, as Coin SIPs are processed as lumpsum orders on the SIP date. However, AMC SIPs will continue unless the AMC specifically suspends existing AMC SIP investments.

When a Coin SIP is created with the step-up option enabled, the installment amount automatically increases on the specified date.

It depends on the type of suspension imposed by the AMC. If only lumpsum investments are suspended, existing Coin SIP (including step-up) will be stopped since Coin SIPs are triggered as lumpsum orders on each installment date. There’s no restriction on creating a new AMC SIP.

However, if the AMC has suspended fresh SIP registrations, no new AMC SIPs can be created, though existing AMC SIPs will continue.

3

Thanks for the clarification!

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