Hi,
The association of mutual funds of India allows me to buy mutual funds direct for 0 fees (MFUIndia.com). What additional benefits do you offer for the fees of 50 rupees a month?
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I can divide it into two bits
Better platform
- Easy SIP, no need to sign NACH or any other physical mandate. You can start/stop/edit an SIP with a click of a button. This would all have to be done through physical forms with MFU and also if investing directly on AMC.
- NAV tracking orders. You can place an order on the system to buy or redeem at any NAV you want into the system. The platform for wait until the NAV reaches your desired level, alert, and place the order.
- Generally a much better user experience on the platform. We will be adding many new analytics/features in the next few months.
Convenience
- Mutual funds in demat, so one portfolio view across stocks, ETF’s, bonds, MF, etc.
- Being in demat also means a much easier access for nominee/dependents in case of any unforseen event.
- One capital gain statement for taxation.
- No need of CAN (Common account number). Another number that you will need to create for yourself.
- Our team for customer support, if something goes wrong.
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If you are not an active investor or if you are not comfortable using MF Utilities or other freely available direct plan investment platforms, then you should go for Coin. The reason being, Rs50/- is expensive if you bought few MFs and not investing any more. For example, you bought few MFs and not done any transactions for say 5 years, still you would have paid (50512) Rs3000/-.
The other problem is you have to exit all of your investments before closing the account. I’m not sure, if you can transfer it to MFUtilities or some other trading account to consider it as closed. So, if you are forced to sell, you may incur unwarranted taxes.
HI,
Does it mean irrespective of my MF portfolio you will charge 600/- Per year as maintanace charge.
At this moment I am comfortable with this amount but after few years like 3-5-10 years if you increase fees periodically & I am not comfortable to pay at that moment then I will be forced with sell my portfolio & stop the fixed charges which is as of now 50/- Per month
Even I have the same query. Can somebody provide their insights on this.
Yes irrespective of the size of your portfolio it is Rs 600 per year. The good news is that they are all in demat form, the day you don’t like what we offer, you can just move them out to another demat.
@nithin There is no need to do paper work with MFU as well. Just like COIN, you can transact everything online.
Do you offer all the fund?
These are the list of mutual funds available on Coin. Over 2000 commission-free direct mutual funds.
@nithin Demat portability doesn’t seem to be easy. In fact, I am trying to move my demat holding from ShareKhan to Zerodha and your support team itself is recommending the previous funds to sell off and start afresh with Zerodha. This is to enable me see my funds in COIN platform. Otherwise, I will hold previous mutual funds in my demat but won’t be able to see them in COIN portfolio. Moreover, previous mutual funds will remain “REGULAR” ones (after demat transfer from Sharekhan to zerodha) and they wont be converted into “DIRECT” ones, which was the sole purpose of my transfer from Sharekhan to Zerodha. Do you have any solution on it?
Other thing I was looking out in paid services is STP (systematic transfer plan) option too.
You can’t convert regular MF plan to direct MF plan.
You need to do a switch to Direct plan (all demat) and then move them.
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Sharekhan doesn’t offer Direct plans, so I cant switch first and then move to Zerodha. Sir, Can I move first and then switch?
Hello Nithin,
I got that, Direct MF will make an advantage of less Expense ratio. But will the mutual fund which we invested varies differently between Direct & Regular which interns in different profits ?
Please clarify
Unfortunately there is no other way to switch from regular to direct. They don’t automatically switch if you move it to Zerodha demat. You can maybe call the AMC if they can convert this into direct in any other way. Once it is direct, you can use Coin to exit them whenever you want.
STP will take time.
Direct and Regular are exact same funds with exact same holdings. The only difference is that regular has much higher expense ratio. Hence direct will always give you more profit.
Check this
Thanks Nithin,
If that is the case, Can you see below and explain why the below two are having different holding value.
Kotak Select Focus Fund - Regular Plan - Growth – ₹ 32.93
Kotak Select Focus Fund - Direct Plan - Growth – ₹ 34.54
I’m also investing in Direct MF via MFU. It is also simple and easy to place any kind of order in MFU. However it does not show the returns on your investment, it only shows the current value of your portfolio. To view the ROI you can login into the website of the corresponding AMC with your PAN and folio number. If you want these reports at one place then you could opt for Zerodha Coin.
You meant the NAV is different. NAV of direct will always be higher because no commission was paid out. Check the below two links
Looking at the replies of people who have invested via MFU, it seems to be convenient as well. Small things like P&L view would hardly matter and definitely not worth paying Rs.600/year for coin. I agree that Coin offers a good user experience and unified experience, but surely not worth paying Rs.47868 extra!! (opportunity cost of Rs.50 i.e Rs 50/month compounded monthly at 8% interest for 25 years 
).
Zerodha should definitely relook at the pricing strategy of Coin. This does not go well with the philosophy of being a discount broker.
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There has been many request to revisit the pricing structure of COIN platform.
Rs 50 /month just for the platform with no SWP/STP facility is too high . Lets see how our discount broker take this further
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