Why is it mandatory to open zerodha Demat Account for buying mutual funds through Coin?

Why is it necessary/mandatory to open a trading account with demat with zerodha before one can invest in Mutual Funds through Coin platform. MF’s can be held without Demat account.
Forcing everyone to have a demat account even when one is not needed adds additional costs to operate the account

  1. Account opening charges
  2. Yearly Demat Charges
  3. Every credit/debit of MF from demat attracts transaction charges

All your Coin MF orders are processed through BSE’s StAR MF platform; in which it’s essential for us to route transactions through demat mode.

Also most of our clients are online investors, who prefer to transact online. We believe it’s convenient for a client to maintain all his holdings (mf+equity) in one demat and also it offers the convenience of selling units online without having to fill in a redemption slip.

1 Like