Hey I was about to start investing in direct mutual funds through Zerodha Coin.
Before starting my investments I had some questions particularly about any charges incurred for using Coin platform (only interested in direct MFs). Please bear with the dumb questions, I am a newbie investor in my 20s-
• From what I have read online, currently Coin has 0 charges for direct MFs. Wanted to confirm this once, if at any point of the investment journey, from buying, putting lumpsum, changing SIP amount, liquidating my MFs, does Zerodha charge anything (excluding the AMC charges like exit load, expense ratio)?
• Few years back Coin was charging some commission. Can Zerodha again start charging commission in future?
• If Zerodha decides to charge commission again (only asking for direct MFs), will it also be applicable to my old MF portfolio and its subsequent gains in future?
• And if I decide to change my MF platform in future, can my MFs from Coin be transferred to other platforms or directly to AMC’s platform? Or the only option would be to redeem my MFs from Coin and again invest through other platforms?
Would appreciate really appreciate if someone from Zerodha team can answer the 3rd question.
Coin is a free platform that does not involve any brokerage fees, commissions, or charges for mutual fund purchases. Zerodha does not levy any fees on mutual fund transactions. Stamp duty charges are applicable while purchasing mutual funds. For more information about stamp duty charges, please check this link.
Mutual funds are available in two variants: Direct mutual funds and Regular mutual funds. The primary difference is that regular mutual funds include a distribution commission, whereas direct mutual funds do not. As we offer direct mutual funds on Coin, there will be no commission charges for investing in them through our platform.
Your mutual fund investments are held in your Zerodha demat account. This allows you the flexibility to transfer your mutual fund investment from one broker to another. Additionally, you have the option to rematerialize the units into physical form if required.