Why invest in direct mutual funds on Coin?


#23

There! I made it a little easier for you to calculate the savings.

I am a little unclear as to how to calculate the total savings, so, I’ll leave that up to you.

I would also like to know about the availability of the ‘Mutual Fund Portfolio Summary’.

Thank you. :slight_smile:


#24

Of course portfolio summary is there. :slight_smile:

I am going to calculate savings on Principal where the expense ratio difference is highest, so you see savings on coin the most. ;)… use the same for others…

Regular fund, Rs 5000 every month for 20 years at 12% compounded, final amount is Rs 46.47lks

Direct fund, Rs 5000 every month for 20 years at 13.79% (1.79% as that is the extra return you make by going direct), final amount is Rs 57.84 lks. That is a whopping Rs 13lks more. It will be lot more if market returns are more or if you hold for longer.


#25

Thank you for the update Nithin :smiley:


#26

Hi Nitin,

I bought a few direct funds on coin, 3-4 lac both equity and debt.
I am a little confused with another articles which my friend suggested that direct funds have lot of documentation
and we need to deal with direct funds and its lot of hassle to remember credentials and operate them.

But on coin i saw i could buy them and i see them in dashboard, is redeeming also from same portal or do we need to seperately contact fund houses to redeem them.

Situation is : What if i am no more around, and my wife has to deal with these investments. Can she just login to coin and redeem all of them or she has to mess around with paper work ?

Little confused, using zerodha from over 2 years now.
Please assist.

Abhishek


#27

Your friend I am guessing is confused. That is the beautiful thing about investing in direct via demat mode. Absolutely no documentation. Yes, your wife can login tomorrow and redeem it, you can even transfer these MF to her demat account. Maybe you should convince your friend to read through this thread and invest on coin. :wink:


#28

i dont think there is any upfront charges for mutual fund now…
only the expense ratio which is calculated anually i guess


Is switching of schemes possible in MF via Coin
#29

Hi Nithin,
I was looking at some of the benefits of coin in your answers. I am currently using https://www.camsonline.com/. All my MF investments are consolidated into a single account and I can invest in Direct mode. There are no charges whatsoever. So many of the benefits you mentioned are not really differentiator, right?
Or am I missing anything?
Thanks


#30

Hi Nithin,

This article says
Purchasing mutual funds through demat account are not devoid of charges. There are annual charges that you pay to maintain this account. Many depository participants have “opted in” for transaction charges, which are Rs 150 for first time investor and Rs 100 for existing investor. These charges are levied on every purchase transaction above Rs 10000/-

Does Coin levy these charges for each SIP ?


#31

No additional charges. Direct mutual funds in demat mode makes sense if you want a combined portfolio view. Having invested through multiple AMC sites I can attest to that fact.

Yes, in case of Zerodha it is rS 300 per year and same is case across other brokers.

Well, Moneycontrol has a way of bullshitting without explaining things in detail, so I am not sure what they are referring to. But there is no such charge in case of Coin.

Let me know if you have any other queries, will answer them if I know. :slight_smile:


#32

If I invest 5000 per month through coin, so coin subscription fee Rs 50 per month which is 50/5000 = 1% cost. Is there same cost in the regular plan too additional to expense ratio? I am naive, please explain total cost if I invest Rs 5000.


#33

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/


#34

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


Courtesy: ET Wealth.


#35

@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


#36

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.


#37

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


#38

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.


#39

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?


#40

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 -

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

  1. Single portfolio view across all funds -

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

image

  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!


#41

Hi

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

Thanks


#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)