Discontinuation of pooling for mutual funds and how it affects Coin

Zerodha Coin - Direct MF
23

Yes

Will confirm later, as I mentioned previously.

24

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.

25

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

26

Yes.

1 Like
27

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?

28

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

4 Likes
29

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?

1 Like
30

@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?

31

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

2 Likes
32

Any update here? We are entering March!

2 Likes
33

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.

34

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 ?

3 Likes
35

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?

1 Like
36

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

37

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

38

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 :cry:
They have sent an email regarding the same yesterday.

39

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.

2 Likes
40

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.

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

2 Likes
41

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

6 Likes
42

Is there any update? Its been 6 days. So wanted to know if there is a separate post on this which I am missing.