Zerodha Coin is a mutual fund investment stage embarked by the well-known discount broker firm, Zerodha. Here, retail investors are allowed to invest in mutual funds in DEMAT form.
At the onset, let me introduce the Mutual Fund in a simple term, for those who are on the nascent stage of financial investments. It’s an investment fund where preponderance of money follows, when number of investors purchase securities.
A mutual fund, which is made available to investors with the help of brokerage firm and that also is proceeded without any type of commission charged for the transaction. Investor will be privileged because it permits him or her to purchase the mutual fund without an up-front commission fee on the trade. For investors with a small amount of investment capital, this can be a effective investment plan.
It gives access to mutual fund investment directly through demat process. This is same as you do in shares, currency and other venues. Without any brokerage charge, you can purchase mutual funds online through Zerodha Coin available on Zerodha portal.
Prevailing methods for investment in mutual funds are given below:
By the help of local distributors:
The investment with the help of these distributors seems to be easy but when you plunge in to the process, you will come to know how costly it can be in the future.
These distributors do the favour of form filling and other paper process, which is quite time consuming.
Other than this, they also charge hefty amount of money depending upon your investment being done.
Sometimes, they charge 2% commission or more initially. And this follows afterwards on yearly basis, unless your investment time is over.
Such investment is not worthy as it makes you pay good amount regardless of the return you are set to achieve.
Fund House Role in mutual fund investment:
There are some formalities, which require registration, form submission, and some other fillings. But all this is easily done in the back office of mutual fund. Or this is done through its website.
When this process is ongoing, your involvement is needed to track the procedure. So you have to give your time and also track it step by step. This, as a result seems to be time consuming.
Zerodha has brought this concept for the ease of investors in dealing with such investments. Demat online process will help in handling whole investment procedure efficiently.
It means you can buy or sell mutual fund units electronically and track all your capital market investments in a consolidated way. The process works for all venues including equity, stocks, bonds, securities. You can convert mutual fund units into demat form by submitting a conversion allowance form which you can get from your broker or warehouse.
In this process, first investment of Rs 25,000 doesn’t need any subscription and has zero charge for it.
But as your investment limit starts rising above Rs. 25000, the subscription charge also increases simultaneously by Rs 50 per month, it will be applicable till the time you pursue your investment plan.
For easy understanding, you can go through the table given below:
|Rs 25000||1st investment||Nil.|
|SIP of Rs 5000||1st ,5 months|
6th month onwards
· Rs 50 per month till investment time.
|SIP of Rs 2000||1st year|
2nd year onwards
· 2.5% of your investment.
Here, SIP stands for Systematic Investment Plan, it is the plan offered by mutual fund to investors for small investments on weekly, monthly or quarterly basis.
With this, I would like to tell you all, about pros and cons of zerodha coin:
As Zerodha portal will directly link you to the Zerodha Coin, you will be at ease while doing your mutual fund investment.