Zerodha Coin is an online platform which allows you to buy Mutual Funds Directly. Zerodha Coin is initiative by Zerodha.
You must be aware that mutual funds can be purchased in two ways either via a distributor or directly from AMC. When you purchase mutual funds via distributor you need to pay additional commission to the distributor. The commission charges are variable, but generally, it is in the range of 0-1.5%.
When you purchase mutual fund directly via AMC website, you need not pay any commission charges. However, you need to visit multiple AMC/Fund house websites to order and manage your portfolio. You can overcome this problem by making an investment through Zerodha Coin.
What is Zerodha Coin?
Zerodha Coin is direct mutual fund platform. This platform is managed by discount broker Zerodha. It is available in web based as well as app based. This platform allows you to buy mutual funds online, without any commission directly from AMC companies. You can invest across 3000+ mutual funds via this platform. Earlier Zerodha was charging Rs.600 per year for making use of this platform. However, now Zerodha Coin is completely free. You need not to pay any money for making use of this platform or app.
Zerodha Coin is an online platform that allows you to invest in direct mutual funds. Unlike regular mutual funds, where you pay a commission to intermediaries, direct mutual funds cut out the middleman, saving you money on expense ratios. Zerodha Coin takes this a step further by offering a seamless way to buy and manage these funds right from their platform.
Zerodha Coin Key Features
1. Direct Mutual Funds
Zerodha Coin exclusively deals with direct mutual funds. This means you don’t pay commission to distributors, saving you anywhere between 0.5% to 1.5% annually compared to regular funds. Over time, these savings can compound significantly.
2. User-Friendly Interface
Navigating Zerodha Coin feels like a breeze. The platform is intuitive, and everything from fund selection to tracking investments is streamlined. Even if you’re a newbie to mutual fund investing, the design ensures you won’t feel overwhelmed.
3. Consolidated Dashboard
The dashboard provides a bird’s-eye view of your entire portfolio. Want to check how your equity funds are doing? Or maybe compare returns across different funds? It’s all neatly displayed in one place.
4. Integration with Demat Account
Since Zerodha Coin integrates with your Zerodha Demat account, all your investments are in one place. No need for scattered documents or remembering multiple login credentials.
5. No Transaction Charges
Zerodha doesn’t charge you anything extra for investing through Coin. You can start with as little as Rs. 100, making it accessible to virtually everyone.
6. Rich Analytical Tools
The platform offers tools to compare mutual funds, analyze past performance, and assess risk levels. This makes it easier to make informed decisions.
How to buy Mutual Funds via Zerodha Coin?
Follow steps given below to buy Mutual Funds via Zerodha Coin
- Go to https://Coin.Zerodha.Com
- Click on Login. You can use Zerodha’s Credential. There are no separate credentials for Coin.
- Search for the fund name by typing its name in the search bar.
- Click on ‘Buy Direct’ Button. You will get another window. In this window just mention the amount you want to invest and click on ‘Buy’ button.
- If you want to create SIP then just click ‘Direct SIP’ button and enter details to setup SIP.
Pros of Zerodha Coin
Every platform has its strengths, and Zerodha Coin is no different. Here are the biggest advantages:
- Cost Savings: Since you’re investing in direct funds, the lower expense ratio means higher returns in the long run.
- Convenience: Integrated with your Demat account, it’s incredibly easy to track and manage investments.
- Transparency: No hidden charges, no fine print. What you see is what you get.
- Diverse Options: With access to over 2,000 mutual fund schemes, you’re spoilt for choice.
- Tax Benefits: You can invest in ELSS (Equity Linked Savings Schemes) for tax deductions under Section 80C.
Cons of Zerodha Coin
While Zerodha Coin has a lot going for it, there are some areas where it could improve:
- Limited Features Compared to Dedicated Platforms: Zerodha Coin is primarily a stockbroker, so its mutual fund features, while robust, may not match platforms designed solely for mutual fund investments.
- No Advisory Services: If you’re new to investing and need guidance, you’ll have to look elsewhere or do your own research.
- Dependence on Zerodha Account: You can’t use Coin without a Zerodha trading and Demat account, which could be a dealbreaker for some.
How to Transfer Mutual Funds to Zerodha?
You can transfer your regular mutual funds to Zerodha Coin. The fund where you have invested your money might be in demat form or non-demat form. The process in both the cases are given below.
(1) Regular Fund in Demat Form
Transferring demat form regular fund to coin is very easy. You need to fill up delivery instruction slip (DIS). You will find DIS Slip from your stock broker. You need to mention your Zerodha DP ID, Mutual fund units, Fund detail in DIS. The process of transfer will take approximately 24 hours.
(2) Regular Fund in Non-Demat Form
The process is complex, if your mutual funds are in non-demat form. You need to go for de-materialization. You need to download the DRF (Dematerialization Form) from Zerodha website. You need to fill up two copies of this form and submit it along with self attested PAN copy and self-attested mutual fund copy. Once you submit this form to head office of Zerodha, the process of De-materialization begins. You need to pay nominal fee of Rs.150 + Courier charges for the conversion.
Comparison with Other Platforms
How does Zerodha Coin stack up against other mutual fund platforms like Groww, Paytm Money, or Kuvera? Let’s see:
1. Groww
Groww offers a more user-friendly app interface and also provides regular mutual funds. If you’re looking for a dedicated app for mutual fund investments, Groww might be a better fit. However, Zerodha Coin edges out with lower costs for direct funds.
2. Paytm Money
Paytm Money is another low-cost platform but doesn’t have the same seamless Demat account integration that Zerodha Coin provides.
3. Kuvera
Kuvera’s USP is its free platform for direct mutual funds. While Kuvera is excellent for financial planning, it lacks Zerodha’s robust trading ecosystem.
Should you buy a Mutual Fund via Zerodha Coin?
Currently, the way to buy direct mutual funds is to visit the AMC/fund house website or office and directly invest. This method generates different portfolios under different AMC. The entire process is cumbersome and time-consuming.
Coin offers this facility via a single console. You need not pay any money for using this facility. However, as of now Coin has the following drawbacks.
- Zerodha coin does not offer any expert recommendation or research inputs, you need to select funds on your own.
- You need to open demat account with Zerodha first. This means you need to pay AMC charge every year.
As per me, you should accept above shortcoming and make use of this platform. This platform offers lot of flexibility and save time in terms of doing paper work.
If you are already using Zerodha Coin, please share your experience and rating in the comment section given below.
