Discontinuation of pooling for mutual funds and how it affects Coin

[Bhuvan]

@Eldho_John_Menachery

Ok so now I am confused.

I have a few MFs present in my portfolio. I have been investing through coin and out of which one was already an AMC SIP.

With the introduction of this new guidline will the remaining SIPs also move to AMC SIP?

Yes. At least initially.

@Eldho_John_Menachery

Will i no longer have the ability to change date of investment and will it only be on certain days of the month(like how amc sip is working right now)

Features like the stepping up, ability to pause and modify were a BIG plus.

We’re working on an alternative to ensure these features will still be available.

[Bhuvan]

@rupeshmandal

Can you help me understand if BSEStarMF will still hold our funds acting as an intermediary once the new guidelines come into effect?

Yes

@rupeshmandal

• Can you please let me know once the new structure i.e. Investor → AMC is enabled, will Coin execute orders in real-time? Currently, it holds them until 1:30 pm to execute them in bulk.
• Will the Coin cut-off timing change to 3 pm instead of 1:30 pm if as per the new guidelines, the broker is not supposed to hold investor money in between?

Will confirm later, as I mentioned previously.

[Vidhya_Shankar_Krish]

Looks like with the new system, we have to make the payment directly from the bank to respective AMC’s. With so many features associated with SIP (like Step up SIP, Pause facility) being taken away I think the sheen of investing through COIN will no more be there. We can take up investing through other platforms like MF Utility or Kfintech.

I have 5 weekly SIPs running in COIN now. One big advantage is that I dont have 5 entries in my bank account every week. With new rules, I think for my investing style, my bank account will be reflecting more entries. High time Zerodha thinks of enabling STP / SWP so that SIPs can be routed through STP from Debt funds.

[Nathiarasan]

@Bhuvan one question. Post this implementation, Is setting up mandate mandatory for SIP’s?

[Bhuvan]

@Nathiarasan

one question. Post this implementation, Is setting up mandate mandatory for SIP’s?

Yes.

[harshilsharma63]

Do I, as an investor with Coin SIP need to do something regarding this? Or will Zerodha be shifting existing SIPs to AMC SIP automatically?

[Bhuvan]

We’re figuring this out. Will update the thread here.

[Aurko]

So the AMC SIPs which are going through BSEStarMF will continue to operate the same after 1st April. Is my understanding correct or that will have to change too?

[abhijeet1]

@Bhuvan
I just invested in few funds through coin. I was expecting it to ask me to transfer money through bank. But order went through and it used the cash lying in my zerodha account.

Is this rule not implemented yet?

[ShubhS9]

@abhijeet1

I just invested in few funds through coin. I was expecting it to ask me to transfer money through bank. But order went through and it used the cash lying in my zerodha account.

Is this rule not implemented yet?

Abhijeet, this rule comes into effect from April 1, 2022.

[kunal_k1]

Any update here? We are entering March!

[Abhishek_Kumar_Sah]

Hi,

If we already have some mutual funds pledged through coin, do we need to take any action?
No SIP, it’s just a lump sum amount invested through coin and Pledged.

[sriramnpkt]

Since April 1 is just 10 days away, can you give an idea of what to do with existing SIPs, I want to be prepared and avoid confusions at the last minute. (remember recent restriction on investment on foreign equity).

I hope this discontinuation does not affect stocks on Kite.

I am new to bank mandates, are they safe ? when money gets deducted for a SIP to be executed on Mar 22 ? what happens if the account does not have sufficient balance ?

If I discontinue investing in a MF, do I need to edit the mandate(schedule) and lower the amount to be debited ?

How will the quarterly AMC charges be collected by Zerodha ?

[Nemish_Gupta]

Hi team
Any clarity on the above points?
5paisa have stopped pledging mutual funds while fyers are still unsure if pledging of mutual funds will be allowed from 1st April or not.
As it was mentioned that pledging of mutual funds will be allowed on zerodha, is the process setup for it?

[sohuas]

@Bhuvan
Any update on this? few days left till SEBI deadline.
I also want to know how conditional orders on mutual funds would work

[emrys11]

need some clarity with this. i also have a Motilal SP500 sip for 2nd april, what will happen with that

[M11]

Motilal Oswal has paused SIPs in their International funds entirely till further notice from 1st April, so dont think our SIPs would be processed any way
They have sent an email regarding the same yesterday.

[Sarabjeet_Singh]

I had raised a support ticket with Zerodha and they told me it will be status quo for Mutual fund pledging. Zerodha will continue to accept them for Margin Funding.

[SachinSingh]

Cutting it really close here, @nithin. Even if the pledging system is going to stay as it is, what about step-up SIPs? If some changes are going to be made, we’ll also be needing a bit of time to decide things.

@Bhuvan

over 70% of all new SIPs have step-up SIPs schedules set for them. In order to ensure all these features continue to work as usual we are figuring out a new structure for the flow of funds and hope to be ready by the time this transition happens.

Unless discussions are still going on regarding this at higher levels, there is no excuse for the lack of clarity…

[Bhuvan]

I’ll post detailed update in a day or two.