Zerodha is India’s leading discount broker and now even you can buy mutual funds with them in completely hassle free manner. I have received lot of mails regarding how to buy mutual funds in Zerodha Coin lately. So I have decided to write article on it.
What is Mutual Funds ?
In a simple term, it is professionally managed investment scheme by assets management company. You can invest in those scheme to earn better return than bank fixed deposit or regular savings scheme. There are different types of mutual funds categorised according to their assets classes. I will cover them in different article.
How to buy MF in Zerodha ?
Zerodha has introduced an innovative platform called ‘Coin’ where you can invest or do SIP.But the best part is ,you can buy ‘Direct’ plans of almost all mutual fund houses on a single platform.
Direct plans are the plans where you don’t have to pay for the commission which asset management companies pays to your stock broker as a commission (We call it as expense ratio). As you don’t have to pay for commission ultimately your return on investment increases by good margin. Generally in direct plan expense ratio is approx 1% and in regular plan it is approx 2-2.5%.
How to buy mutual funds in Zerodha:
- Go to https://Coin.Zerodha.Com
- Click on Login. You need to login using Zerodha’s Credential. There are no separate credentials for Coin.
- On Home Screen, You can search for any funds by typing its name in the search bar.
- Suppose you want to buy ‘Motilal Oswal Most Focused 25 Funds -Direct Plan’. I have explained the procedure in below images.
5. 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. Your order will be executed immediately if market is open otherwise it will be executed on next working day.
6. If you want to create SIP then just click ‘Direct SIP’ button in Step 4. You can choose between various option for your SIP frequency.
Now lets See Pro’s and Con’s of Zerodha Mutual Funds.
- You can invest in ‘Direct Plans’ most of the funds in single platform.
- It’s easy to use and easy to track. You will get your Profit/Loss statement in one place which will definitely save your time while tax filing.
- Investment/SIP up to Rs.25000/- is free and after that there is a flat fee of Rs.50 per month.
- Few funds are not available to invest.
- There is no expert recommendation or research available on Coin platform. You need to choose your funds on your own research.
- THough Rs.50 per month fee is reasonable right now but they might increase it in future.
Hope you liked this article on how to buy mutual funds in Zerodha. Please feel free to comment if you need any help.