Direct vs Non Direct Mutual Funds' fees at Zerodha


#1

Can you please provide a comparison with an example of what Zerodha specifically, charges for a mutual fund via non direct mode? Take for example if I invest Rs 50000 today as one time investment for 10 years in Axis Long Term Equity Fund growth plan. So for comparison sake let us assume coin platform fees, service tax and AMC fees remains same so I’ll be charged Rs990*10=Rs9900 at coin platform. How much Zerodha will charges me in non direct mode in this case?


#2

For regular plans, Zerodha doesn’t directly charge you anything. AMC will charge and then in turn pass it back to us. So typically upto 1% upfront and say between 0.75 to 1% of AUM for as long as you held it. So with 50k, upfront Rs 500 and then upto Rs 500 every year for as long as you held. But since it is a % of AUM, if your investment value goes upto say 1lk in 4 years, after 4 years it will be upto 1% of Rs 1lk.

Check this link.


#3

don’t buy mutual funds from zerodha there are so many hidden charges they are not telling ,
such as for axis bank long term equity elss mutual fund i checked and digged into charges this is what i found

  • 50 Rs per month + tax = around 57 Rs per mnth
  • around 150 rs one time charge
  • 100 Rs transaction charges per 10000 Rs.
  • 300 Rs account maintenance charges annually
  • different expenses charges for direct and indirect mutual funds.
  • service tax will get included
  • something 30bps are allowed to be charged by distributors am searching it.

buy directly from website of mutual fund it will save you so many charges in long term


#4

Hey Puneet… what are these charges we are not telling? These are all clearly mentioned when opening an account - Rs 50 per month and Rs 300 annually as AMC for demat through which you can do equity as well. Since mutual funds are in demat, there is DP charge of Rs 5.5 irrespective of the value charged by CDSL when you redeem.

Rs 150 one time charge? Rs 100 transaction charges? Where did you get all of this? Expense ratio is charged by the AMC, they determine how much for direct and for regular. Nothing to do with the platform. Even if we show expense ratio differently, it won’t matter as it is charged by the AMC. Didn’t get what you were referring to by 30bps charge, we are not selling regular plans, and even if we did, distributors can’t just charge that.


#5

i called up at one of the mutual fund office , what they told me is that i have to pay rs 100 per transaction of 10000 if i buy through​ platform and nothing if i buy through website directly.
Also you should not mention 50 per month you should update it and mention as 50 rs + 15%tax +5.5 Rs
this will make it around 60 per month your own call center hang me up when i asked is there anything apart from 50 , then only she told me about taxes


#6

also as far as know there is a
12% service tax also so dp charges is around 10-14


#7

and where did you mention il&fs charges ?


#8

We sell mutual funds in demat form, we dont’ charge Rs 100 per 10000. It will be best if you clarify that with us directly. All charges are excluding service tax. It is not Rs 5.5 per month, it is Rs 5.5 for every redemption request made. 90% of investments made with us have never been redeemed.


#9

Service tax of 15% on Rs 5.5 , which will be around Rs 6.25


#10

There is no IL&FS involved in coin, so no charges.


#11

The meaning of direct MF as i understand is if you buy from AMC website / Fund House itself but then if we visit any AMC website , say like Mirae Asset’s website then why do we see “Direct” and “Regular” as two different plans there ?
I mean by default shouldn’t it be Direct as we are purchasing it from there own website ?


#12

Mutual funds give an option for distributors to buy it on the platform on behalf of their clients. Hence you have both the options.


#13

I don’t see any AMC of 300 mentioned here while making first payment. isn’t that called hidden ?


#14

It is very much mentioned “Equity & Currency” which includes mutual funds also as mentioned in the smaller font below.