Why is Coin based on demat?

Zerodha Coin - Direct MF
14

I am also not 100% sure here.
But let me take an educated guess.

  1. Yes Demat with CDSL/NSDL are extremely safe. There are indeed minuscule chances of any fraud on account of Zerodha or other brokers. But I assume that you have given PoA to Broker and hence he have all powers to remove your MFs etc from your demat - ethical, unethical, illegal - that will be matter of investigation.
    Why I said diversification.

  2. Just to make use of various facilities by various services.

  3. To save bucks on services

  4. Easy visualizing the investments.

The MFU have more advanced and more efficient platform, services, facilities than Coin.
You need not pay 50 per month.

Also with zerodha there is always chances of some mishap or the other. consider a situation in which you are not able to exit a position, sell MF because N is busy accepting some award? :scream::scream:

I have Direct MFs with MFU. Let me tell you the Apps from which I can access all those MFs

  1. goMF -by MFU
  2. myCAMS - by CAMS
  3. KTrack - by Karvy
  4. Individual Apps of various AMC
  5. Website of MFU, CAMS, Karvy & individual AMCs

Now i can access, transact in any MF from any of these platforms.
For eg SBI MF can be accessed from goMF, myCAMS, SBIMF Invest APP.
But this is possible only if you have SoA MF. If your MF is in Demat format, you can see your folio from the app but cant transact. So in case you have coin based MF only gateway to your folio is Coin - which may crash any time just like kite.
So yes its way safer to have SoA MF.

PS - once N himself put forward this line of argument while defending coin vs MFU

And guess what, same things happening with zerodha. Can’t keep pace.

2 Likes