Transfer of mutual funds and charges

Zerodha Coin - Direct MF
1

Hello there,

I have a few questions regarding the transfer of mutual funds to coin.

I have read the article on how to move funds.

And from what I can gather is coin uses a DEMAT approach while other players such as groww or paytm money use statement of account approach.

So I will be transferring my mutual funds into DEMAT form hence the CDSL route, otherwise, it would have been easier.

But I was not able to make out a few things.

  1. I have direct mutual funds and regular plan mutual funds as well. When I transfer my mutual funds will the funds be sold and then bought again? This happened to me once when I transferred a mutual fund into paytm money.

  2. what are the charges for Zerodha coin. I have an account with kite. Will I pay DP charges or any other demat charges? Currently, I only have the expense ratio to be worried about.

Thanks

2

When you transfer your mutual funds to Coin, you will have to manually add your buy average price. You can check the process here.

Also, if you’re transferring regular plans, these will now reflect in your holdings on Coin, as we offer direct plans. So it’s best to redeem these investments and start afresh on Coin.

Coin is free to use. There are no charges for investing or redeeming your mutual fund investments. DP charges are not applicable.

AMC will be for your Demat account. However, if the value of your holdings is <50k and this is the only Demat account you hold then it’ll be considered as BSDA, on which AMC is not applicable. More details here: What is a Basic Services Demat Account (BSDA) and how can one be opened at Zerodha?

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3

thanks for the reply.

I still have a question. I have all direct plans in the mutual funds. So will it be considered a redemption and the be re-invested? Or just be transferred?

The reason I ask is because of TAX liability.

Thanks

4

These will just be transferred. Once the units are transferred, you will get option to manually update your average price. You can check out the process here: Why is the buy average for some mutual funds shown as a discrepancy?

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5

Hello sir @ShubhS9 if my mutual fund transferred to coin my SIP still continue or will stop thank you…

6

Once you have transferred the mutual funds, you can set-up SIPs again for them from Coin. You can check the process here.

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