'Sweet' Sneaky 'Baskets', Kotak Securities Charge for Direct Mutual Fund

Kotak Securities have sneakily concealed the fact that they charge additional AMC of Rs 999 if you buy Direct MF through them.

And this appears to be per Fund :sweat_smile:

1 Like

Why would they provide a service for free?

Because many other brokers do (Ex Zerodha Coin and literally every decent top broker) - and people who pledge such MF will trade more and generate brokerage for them.

What I dislike is that KS is not really upfront about this charge.

Did not pledge, so did not know about this feature.

But even then, not all who buy MFs will pledge, so for such customers, an AMC sounds reasonable, considering the costs for providing such a service.

This has to be mentioned, obviously.

And this sounds too much, personally.

There’s nothing wrong with brokers charging for their services but I agree that it should be transparent and clearly mentioned on the website so users can make their decision after evaluating every aspect. This is something that I really like about finvasia, if they say 0 brokerage then they actually offer it without any hidden costs, telling from experience.