COIN charges comparison with other players

#1

“Flat fees of just Rs 50/month for subscribing to Coin irrespective of number/value of MF transactions” is this for Dmat charges. if so, for a year it comes to Rs 600… Is it higher or lower compared to other service provider in the market??

#2

Almost 90% of mutual fund investments today happens through regular plans. In regular mutual funds, the distributor gets paid back up to 1.5% upfront and 1% end of every year as trail commission. Check this answer.

To give you an example, if you invest using regular plan (assuming a return of 15%), SIP of Rs 5000 for 25 years, the corpus at the end is 1.36 crores. If you do the same through direct, it can be Rs 1.64 crores. Whopping Rs 28 lks more. That is because in regular every year 1% goes away as commission, in direct it doesn’t.

Rs 50/month is the cost of subscribing to the direct platform. In the above example, for 25 years you would have paid around Rs 15000 in monthly fees as compared to regular plan where you could have potentially paid up to Rs 28lks.

Couple of other players who are offering direct (not with the convenience of demat) charge around Rs 1000 to Rs 2000 yearly with additional transaction charges.

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#3

What are the facilities of demat in zerodha? I read on internet there is no any other charges of direct plan such as additional charges and yearly charges

#4

Quoting from this answer, these are the benefits.

Why direct mutual funds on Coin?

Currently the way to buy direct mutual funds is to visit the AMC/fund house website or office and directly invest. Different portfolios for different AMC’s, getting a common account number (CAN), cumbersome setting up SIP process, generally quite inconvenient. Hence coin.

Coin offers investing in direct mutual funds (we earn 0 commission from your investment) with convenience of being in demat. So single portfolio across stocks, MF ( over 26 AMC’s and 2000 funds), ETF’s, Bonds etc.

  1. Easy SIP, start stop whenever you want without any NACH requirement. Increase or decrease SIP values at will.
  2. NAV tracking orders. Similar to stocks, place orders to purchase or redeem funds based on NAV.
    MF in demat form and hence fungible. Extremely easy to pledge and take a loan against in case of emergency.
  3. Single capital gain statement, P&L, visualizations, and more.
  4. MF or stocks in demat is much easier to claim by dependents (nominee of demat) in case of death. Direct plans with multiple AMC’s would mean multiple folios, difficult to aggregate and claim.
#5

Nithin if you consider compounding interest for 50 at 12pa it comes around 95k not 15k for 25 years. And will this 50 per month remain same for next 25 years?

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#6

Even then also, paying₹50/- is worth the benefits what you get on coin platform.
At least this charge will make us disciplined in case of investment. Not to mention the ease of starting, pausing & stopping in just one click. If your NACH mandate is failed you will be charged ₹ 250+ taxes.
It’s my view…

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#7

hi, I have observed there is a deduction of 0.01 and 0.02 paisa during alternate sometimes once in 3 months from the amount im investing into mutual funds.Can i know why it is??

#8

Hi Ravi,

There is no deduction as such. When you divide the investment amount by the NAV of allotment date, you will realize the value goes up till 12/13 decimal places. Now, the AMCs will always round off and credit the units up till 3 decimal places and the same is visible in your portfolio on COIN. Now, the invested amount on COIN is the result of the multiplication of the NAV * Quantity allotted. This leads to the value being shown as few decimal places lesser or more than the invest amount.

For example, if you had placed an order to invest Rs 5000 , NAV is 15.61 then you should actually receive an allotment of 320.3074951953876 units. But, the AMC will allot 320.307 units. The result of 15.61 * 320.307 = Rs 4999.99

There can be instance wherein it shows Rs 5000.01 but that does not imply that we you have invested 5000.01 and we have debited 0.01 less from your trading account :smile:

1 Like
#9

hi
i am from australia
i want to invest 25 lacs in swp. every 2.5 years for next 10-15 years can coin do this for me?

#10

@Vrajesh_Patel1 Currently, SWP is not available on COIN. But, we will be implementing this feature in the future.

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#11

@Arjuna_Suresh: While taking the liberty to name the platforms like MFU, Invezta, Unovest & CAMS, the comparison is like Apple to oranges (depending on what you like). COIN so far looks on another level and the only thing which has stopped me to full throttle is DEMAT conversion process of old units and unavailability of fund houses like Franklin.
My request is to transact or rather try to transact on the above platforms and then you will realize.
PS: I am not a ZERODHA employee

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#12

Just fyi for all those who want to use COIN, the folio numbers which are generated by direct MF on COIN is missing basic details and now CAMS is troubling to physically update the contact details and Aadhar for all folios purchased through Zerodha Coin, don’t know why zerodha has not provided the basic details like email/phone/aadhar number to them ,I am facing a lot of problem because of that and have raised it with support team also but no help. Thinking to cancel coin funds.

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#13

One basic question :-
I took one MF "Reliance Small Cap Fund Direct " from Reliance MF website, in that I started my SIP with just 1000 INR.
But On COIN, in same MF , I paid 5000 to start.
Can anyone explain “WHY” ?

#14

MF utility is best for those who want to invest in direct MF. Its free of cost . Only things you need papperwork only once.
They provide all facilities like STP, SWP and many more.
I dont know why people use COIN ?
https://www.mfuindia.com/

#15

Due to its dashboard and quite number of things at once place.

Can you guide how to use mfuindia.
I already got a eCAN recently.

#16

Why paperwork is required in today’s world?
paisabazaar is much better with ZERO charges, no limits.

I actually don’t see any advantage of having MFs in Demat form.
you’ve to be at mercy of your broker to provide the reports.
Else AMCs give your CAS for all of your folios against your PAN structure

https://mutualfund.paisabazaar.com/

While I appreciate Zerodha as Stock broker, they should have also come up as pioneers for charging NIL for direct MF, just as paisabazaar has ventured to get more customers for other products.

I’ve signed with paisabazaar them today. Not convinced much with 600 annual fee with no facility of SWP and other systematic plans, as per one of the readers comments and no Franklin house in the option.

#17

This is interesting.

How do they plan to run this website , if they don’t charge anything.

One fine day , they will shut down the website due to lack of funds for running the website.

There is no free lunch in this business.

Every platform/website needs sustenance fees.

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#19

50rs is not a big amount , but in return u have to provide some basic features like STP, SWP and even account statement

1 Like
#20

Just to give you a broader picture, have a look at below image:

#21

Dude they are not fools with that kind of business model, :wink:, you know what their main agenda right now to subscribe enough customers to make a huge customer base, and then my friend they will start getting their real earnings, you ask how, see in this world there are enough investors who need guidance on their investments so what’s the solution you ask, here is the solution, they will start value added/premium services eg. portfolio analyzing, advisory services. So my friend this business is going to thrive and again they are not fools.