Lifetime free AMC demat

Why don’t zerodha open lifetime free AMC demat account?

Other brokers are giving this facility.

Awaiting for the reply…

0 brokerage, free direct mutual fund investing and yet 0 AMC? :slight_smile:
There are costs involved in maintaining a demat.

Plus the Rs 300 you pay is nothing compared to the benefits you get out of you account:

NSDL itself is offering lifetime free AMC demat via the DPs .
So ; why don’t the DP offer the the same to the clients ?
Awaiting for the reply…

NSDL is a Depository, like how NSE is a Exchange. NSDL does not prescribe the fee it’s DPs have to charge. AMC is charged by the service provider and DPs are free to charge as per their preference.



What is freebies ?

if the demat account and the trading account of the client is having NIL balance and dormant for the last 3 ~5 years . The broker , thus , has stopped debiting the AMC charges . Now , if the client reactivates the account ; will the broker debit and charge the AMC for all the past 3~5 years ? will the broker also charge the interest ?

AMC is charged irrespective of your account being Dormant or active.

Zerodha charges AMC quarterly.

If your account balance is zero and AMC is charged, your ledger balance will become negative.

Once your ledger balance becomes negative, delayed payment charges will be levied.

According to [this article] Interest is levied at 18% a year or 0.05% per day on the outstanding amount.(I see a deduction "Delayed payment charges" on my ledger? Why is this?)

It is best to ensure you have a sufficient balance in your trading account to avoid delayed payment charges.

It varies from one broker to another where they offer lifetime free AMC demat. Fortunately, my broker offers me a lifetime free AMC demat.