I understand where you are coming from brother, however as I see it, “Coin” is being provided as a free service (correct me if I am wrong) and if I am understanding it correctly, it works differently compared to other mutual funds, where the stocks don’t actually go into your demat account.
As this is a relatively new way to do MF, Coin’s backend system was bound to have some unforseen shortcomings… I am sure no one wants Coin to be inferior to others, even Zerodha team (who have been keeping quiet, as to reduce their legal liability I assume).
In the interim, you can continue using other MF brokers or accept Coin’s flaws and hope the Z team revamp the backend enough to allow more accurate cut off timings.
But, if you understand the business landscape, it is so because there were competition mushrooming like Kuvera, Groww, Paytm had announced Paytm money to get into mutual fund business. So it was more of peer pressure that forced Zerodha to make Coin free otherwise they would have lost so many users to the competition.
Also, the way the other platform works, be it Kuvera, Groww etc, they provide mutual fund services in SoA format (Statement of Accounts) which is completely free by the AMC. Even if you don’t want to use those 3rd party services, you can directly login to AMC website and invest for free. That’s why under pressure Zerodha had to make Coin free. More so they were not providing any value added services. Many basic functionalities are still not done like STP, SWP etc.
BTW, do you know that with each mutual fund redemption order, Zerodha is paying Rs 5.5 + GST as Demat charges from its pocket because Zerodha provides mutual fund in Demat format. Since the competition like Kuvera and Groww cost zero to buy or sell a mutual fund, Zerodha had to do the same, providing for free while bearing the cost of 5.5 + GST per sell order.
Cut-off timing is non-negotiable. I repeat non-negotiable. Period. End of discussion. That’s a fundamental right of an investor to be able to place an order as per SEBI rules.
Even I want Coin to improve so more and more users join. And my questions are only to remove the dust over the truth so Zerodha team can see it clearly. Understanding that Zerodha is absorbing the cost of 5.5+ GST per sell order of mutual fund, I am okay with paying more as AMC charges or subscribing to premium services provided Zerodha gives us value and quality and the basics are taken care of like cut-off timing.
I use Kuvera and INDmoney to import my CAS and analyze my portfolio. If you do a survey, most of the Coin users go to a 3rd party like Kuvera etc to analyze their portfolio. It’s a failure on Coin’s part to not be able to retain a customer. Because Coin updates NAV at a snail speed. While the other platforms are updated by 11:30 pm Coin updates the NAV only next working day when market opens.
Try it tomorrow. After the market closes see when can you see Friday’s 26th March closing NAV on Coin. It would only show you on Tuesday 30th March after the market opens because Saturday, Sunday, and Monday (Holi) market is closed. While on Kuvera it would show tomorrow’s NAV tomorrow night at 11:30 pm. There is unnecessary lag on Coin.
Moreover, it doesn’t tell you the total expense ratio of the portfolio, XIRR, performance vs inflation, etc deep analysis. I wouldn’t mind paying for such a service if coin introduces so, but first, the basics need to be right.
Let us see what SEBI has to say about this, in case you decide to lodge a complaint on their portal. Personally I agree with you, but I am also aware of the potential practical issues which may arise… so I am going to stay neutral for now.
Thanks for the recommendations, both of them look good…
Also thanks for the detailed write-up, I also read your “10 reasons” thread to get the full context.