Why invest in direct mutual funds on Coin?

Zerodha Coin - Direct MF
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First 25k is free, so your 50 per month starts after that. There will be no other commissions that will be deducted from your investment. With regular, you would be paying upfront and trail commission for as long as invested. I suggest you to check out this savings calculator which we have on every fund on https://coin.zerodha.com/

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34

Here is an interesting figure why we should invest in direct mutual fund over regular ones.

Gain By Going Direct
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Courtesy: ET Wealth.

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@NithinKamath
after i did my calculation it shows for monthly SIP of 5000Rs the expenses are more on zerodha Coin.
i created a expense sheet for SIP 5000 Rs over a 25 year span for investing in L&T Emerging Businesses Fund - Direct Plan
it shows an expense of ₹31,510 in Coin-Direct plan method compared to Regular Plan ₹26,040 over a period of 25 years.

Expense Sheet

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Hmm… you are not doing this correctly. Expense ratio is charged daily on the total corpus. So after 1 month if your total investment value is 5200 (5000+say Rs 200 gain), you pay the expenseratio/365 x current investment value. Similarly say after 1 year if your total investment is 1lk, on 366th day you pay 2/365 x 100 x 1,00,000 (if expense ratio is 2).

@Karthik maybe you can link that sheet you have on this.

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@stephinnn - Alternatively, you can do the calculation by taking the difference in the expense ratio. Mailing you the excel.

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Not sure why the values are constant in your sheet are constant. Like Nithin said, expense ratio is deducted daily. So you can download the historic NAVs and deduct the expense ratios from both direct and regular to calculate the savings.

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Why do I need to invest on ‘coin’ if there are additional charges of 50 pm (for >25k), Instead I can to appropriate fund website and invest in DIRECT plans? Am I missing something?

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If it was just about purchasing the funds, then yes going to the fund house and buying works. But Coin offers you many advantage which a serious investor seeks. Let me list few for you -

  1. When you search, Coin aggregates all the funds in 1 single page for you -

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  1. You can easily manage your SIPs, features like start, stop, modify SIPs offers great flexibility to investors -

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  1. Single portfolio view across all funds -

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  1. Gives you tax statement (for 80C), across all funds -

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  1. Single account to manage your EQ and MF’s - all in DEMAT form (hence paperless and hazzle free).

  2. Consolidated asset holding view -

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  1. Extremely inexpensive - Coin charges just Rs.50 per month. Remember, Coin is a direct mutual fund platform, which means the return on your investments is higher compared to a regular fund.

Happy investing!

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41

Hi

Did you receive any response for this question? I have the same doubt, how different COIN when compared with CAMS ?

Thanks

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42

First difference: see point 2 (above) the flexibility.
Second: coin has many fund house to purchase from as compared to CAMS (like Mirae asset, Reliance MF, Motilal oswal MF many more)

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Hi Bhuvanesh,

I Have visited Smallcase website.They Idea is cool. How much they charge when we purchase from small case?
Is it per transaction or a subscription like Coin (flat 50/month)?

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Pay a flat one-time fee when you buy a smallcase
For all smallcases (except Select): Rs. 100 + GST (Rs. 18)
For Select smallcases: Rs. 200 + GST (Rs. 36)

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Hi…
I am completely new to mutual fund and so reached out to few brokers to help me to invest and taking complete financial advises. They service would be providing us complete knowledge on mutual fund and idea where to invest, providing online platform or Mobile app to track our investment and current NAV and finally providing us advises to switch to different funds based on the market situation by continuously tracking our funds. I would like to know if I invest in direct plans through coin will I get the same set of services.

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No, they do not provide advisory. It is just a platform to buy direct mutual funds in Demat form. Though they provide a bucket of their chosen funds from each category (Equity, Debt & ELSS).

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Hey
Investing from cams is 100% free.How it compares with Coin ?
Few differences:

  1. Camsonline is 100% free, Coin has 50 per month flat fee whether you buy/sell mf or not.
    2.cams has limited mutual funds for investment, Coin might have more. Like you cannot invest int Reliance MF or Axis MF on cams per my knowledge.
    3.Cams - all transactions require logon to bank account. Coin- You have to add money to zerodha first and then pay.
  2. Cams- You can invest into both direct and regular funds. You can convert existing regular mf into direct mf. Coin - Investment only in direct mf. Not sure about converting regular to direct mf is available.
  3. Cams- no DP charges as mf units are not in demat . Coin - DP charges Rs 5.5 per transaction as mf units are in demat.

Overall cams provide limited mf investment at the moment but free of cost. Coin has probably more mf listed for investment with 600 per year fee.

Hope that answers your question.

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Coin - Investment only in direct mf. Not sure about converting regular to direct mf is available
coin have both direct and regular but cannot convert to direct

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Can we pledge MF portfolio on coin? Would you be giving margin for collateral for trading F&O?

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Will start soon.

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Hi @siva Any update on pledge of MF?

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We are working on bunch of few new things and this is one among those but will take some more time.