Our earlier platform was selling only regular plans (not direct). In regular plan, a distributor is paid upto 1.5% upfront commission and upto 1% every year as trail commission. Since distributor gets back this commission as earnings, they don’t charge any platform fees or execution fees ( guys like ICICI direct, still charge extra as transaction).
Coin sells mutual fund in direct plan. No distributors are mapped to a direct plan, so no one gets a commission from fund house. So this means is that as an investor, your NAV of the fund outperforms the regular fund by this 1.5% upfront and 1% as trail commission every year. By selling direct funds, we don’t earn anything from fund house, hence we are charging Rs 50/month for Coin. Retail investors don’t know about direct plans, because there is no incentive for anyone to pitch them to you, until now.
Check this on why coin?