STP in COIN, I think there are some difficulties in implementing, such as
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From an investor perspective, STP may be costly in COIN, since all the Mutual fund units are stored in the DMAT format, for every withdrawal (transfer from one fund to the other), there will be redemption charges of Rs. 5.5 (DP charges), we cannot eliminate.
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Caution : Even if they implement STP or SWP, we have to think twice before putting the order, since if assume 5 STP’s to 5 different funds per Month means = 5 X 12 X 5.5 = Rs. 330/Year (worst case), which is above the monthly subscription charges, and trading account charges (if you are doing some stock transactions, then it is OK otherwise, this is an additional burden on “only COIN” users)
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Another thing is redemption time, right now it is T+2, It means once you put an order for redemption, it takes 2 days to get Money into your account. Since units are stored in DMAT form, every order has to follow T+2 time frame, in the case of investment through AMCs (MF companies) , it is an internal transfer (i.e. within the AMC) but in COIN it is different.
SIP from the Bank is not in the hands of ZERODHA, SEBI have to create some facility for brokerage firms (who are selling MF units in DMAT form) to accept direct payments from bank to mutual funds, until it happen we have to wait… and also we have to Rs. 500 annual charges for account maintenance, which is compulsory.
Considering all these, Total year charges for “only COIN” users will comes around = 600 + 330 + 500 = Rs. 1430, which is almost equal to 0.5% additional expense ratio for a portfolio value of Rs. 286000, which we are paying for a unified interface/single window interface in the worst case) (some times total STPs and SWPs may be more, if you diversify reasonably or run parallel STPs and SWPs, in that cases Rs. 330 may be even moreeee)
CAGR/XIRR and P/L statement for mutual funds Can be implemented
Above mentioned are Just my calculations as an investor may not applicable for everyone, You can calculate for your case…
Hence, implementation of STP may not happen in soon time possible, we may have to wait (
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