Hi,
I understand there is no charge if we invest through coin in mutual funds. There is no platform fee or brokerages from Zerodha.
But How does STT and other transaction charges works? STT or other transaction charges are applicable while selling mutual fund units just like stocks?
Please educate me.
The Securities Transaction Tax (STT), which is 0.001%, is applicable on the sell side of mutual funds.
Source: https://www.nseindia.com/invest/first-time-investor-sebi-turnover-fees-stt-other-levies
Other than STT, there is a stamp duty charge (applicable on the purchase of a mutual fund order), which is explained in this article: Stamp Duty on Mutual Funds.
Another intermediary charge is the Exit Load, which is levied by the AMC (Asset Management Company) of the fund to discourage premature redemption of mutual funds. You can learn more here: How to Calculate Exit Load.
