Coin Charges vs. earlier platform?

I understand even the earlier MF platform of Zerodha wasn’t charging any subscription fees (Does that makes the investments Direct? - as Distributor is not charging anything). So how is coin different from your own earlier platform in terms of charge structure?

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?

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Well, I think that here it’s all about commission in general. So no problem. But yeah, the conditions aren’t bad=)

Hi Coin team,

  1. What are the charges on SIP?
  2. Also let me know what will be the tax implications as per new LTCG rule on SIP for 10-15 years? I am not much aware of it.
  3. I have a lumpsum investment in ELSS and i was told that 50/- INR will be deducted per month? But I am not able to find these monthly deduction transaction on coin though the deduction is happening. Where to see these deductions?

Please help.

Rs 50 PM once your total investments cross Rs 25000.

Explained here.

You can check your ledger in Q.

Hi All,

What are benefits of investing in Direct Mutual Funds through Coin platform than investing in the same direct mutual fund by opening an account in the AMC Website.
Both are direct mutual funds only. So no link to regular plans.
Please help me with the advantages if any.
Some disadvantages in Coin would be the subscription fees (50 Rs per month), SIP hassles (Transferring money every month to Zerodha Backoffice), Folio number generations, etc.
Please help.

Thanks,
Omkar

Once you start buying mutual funds in demat form, you don’t need to be bothered about folio numbers anymore. Your DP ID is all that matters. That is actually an advantage.

About transferring money, UPI/Enach integration is currently being worked on. We should soon be able to offer same ability to debit money directly from your bank for SIP.

Yes there is Rs 50 per month, but if you use the platform and the convenience to track all your investments in one place.

Some others that I have mentioned form before

Easy SIP, start stop whenever you want without any NACH requirement. Increase or decrease SIP values at will.
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.
Single capital gain statement, P&L, visualizations, and more.
MF or stocks in demat are much easier to claim by dependents (nominee of demat) in the case of death. Direct plans with multiple AMC’s would mean multiple folios, difficult to aggregate and claim.

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Thanks Nithin,

That was quick.
Any advantages Zerodha Coin has over myCAMS ?
One more thing, I want the folio no details and a document mentioning that the ELSS I invest in qualifies to be a 80C Investment. Can I get both the documents from Coin ?
In case Zerodha shuts down in future (I would never wish that to happen, you guyz are great) how will I be able to access my MF Units ?
Also, you said something regarding pledging of MF Units for Loan. Is that Possible in Zerodha and what is the way ?

Thanks,
Omkar

UPI us indeed revolutionary. Saves a lot of hassle.

Hi @nithin ,@faisr, @Karthik , @BharatW , Kuvera & Groww somehow are now selling Direct Plans for FREE, what are your views on this? What will keep Coin relevant in the long run? They claim to earn revenue by selling financial services in the future. The One account for everything is the only advantage I can think of, because these platforms seem more complete for now at least.

I am a big fan of Zerodha and its platforms and that’s why this seems like a real concern to me if the business models of these companies turn out to be sustainable then yes they could give Coin a tough competition.

This seems interesting.