Zerodha SIP Mutual Fund Investment in 3 Easy Steps

Published on Monday, December 31, 2018 by Chittorgarh.com Team | Modified on Saturday, October 17, 2020

Zerodha is a leading online discount broker in India. It also offers Mutual Fund investments to its customer through its platform 'Zerodha Coin'. This brings Zerodha customers the convenience to trade in stocks, currencies, derivatives, and mutual funds from one account. And manage it from a single Demat account.

Zerodha Mutual Fund Review

Mutual fund investment is a key offering from Zerodha. Zerodha offers direct mutual funds through its Coin platform.

Why invest in Mutual Funds through Zerodha?

7 reasons why you should buy Mutual Funds from Zerodha Coin:

1. Buy Mutual Funds directly from asset management companies.
2. Zero fees, brokerage or commissions charged on investments.
3. No DP charges on MF redemption.
4. Facility for both, lump sum and SIP investments.
5. Get better control over your SIP plan. Invest without any ECS/NACH mandate requirement. Increase or decrease SIP values as per your need.
6. Invest online at your own convenience.
7. Invest in multiple securities through one trading account.
8. Consolidate all your investments in one Demat account.

Zerodha Mutual Fund Commission

Zerodha Coin lets you buy mutual funds online directly from asset management companies. There's no commission charged on buying Mutual Funds. Customers who buy from Zerodha can save up to 1.5% in annual commissions.

Zerodha Mutual Fund Brokerage

Zerodha mutual fund brokerage is Rs 0 (brokerage free). The service is available free of costs. There are no account opening and maintenance fees.

Zerodha Mutual Fund Charges

Customers can buy Mutual Funds from Zerodha free of cost. There are no charges on investing in Mutual Funds at Zerodha Coin platform.

Zerodha Mutual Fund Exit Load

Exit Loads are penalties charged by the Asset Management Companies. Exit Load is a way to discourage investors from premature withdrawals or redemption. The exit load rates vary from fund to fund. Also, not all funds charge exit load. You can find the exit load info on the scheme related document. It is also available on the particular fund's page on Zerodha Coin.

Zerodha Mutual Fund SIP (Zerodha SIP Review)

Systematic Investment Plan or SIP allows you to systematically invest in a fund. You can start with a fixed amount and invest weekly, monthly, and quarterly. Most mutual fund SIPs start at a minimum of Rs 500 per month.

SIP offers many benefits to investor's like:

• Invest in small amounts
• No need to time the market
• The convenience of auto-debit from a bank account
• Useful in both, short term and long term wealth creation
• An efficient way to invest in equities for new investors
• Encourages financial discipline and savings
• Helps you set and achieve financial goals

Zerodha SIP Charges

There are no charges on investing through Zerodha. This can help you save up t0 1.5% annually on charges and commissions when compared with other platforms.

Zerodha SIP in Stocks (Zerodha Equity SIP)

Zerodha doesn't provide SIP in stocks directly through its investment platform kite or coin.

But this feature is available through a Zerodha official add-on Sentinel. With Sentinel, you can now create and trigger basket orders based on conditions. You can also invest systematically (SIP) in stocks, ETFs with SIP alerts. Note that Sentinel is a paid add-on by Zerodha.

How to Invest in Mutual Funds through SIP using Zerodha Demat account?

Zerodha customers can invest in Mutual Funds using the Zerodha Coin website.

In 2017, Zerodha launched the 'Coin' Mutual Fund platform. The platform offers Zerodha customers access to over 2000 funds. And no commission is charged on investing in these funds. The platform provides access to funds from all popular Mutual Fund companies. But, there are a few things you should know before investing in Zerodha Coin

• Zerodha doesn't follow the conventional SIP model on all funds. In traditional SIP mode, you submit an ECS/NACH mandate. The money is then debited from your bank account on a specified date. In Zerodha's SIP mode, all the SIP orders from various customers are clubbed together. And then sent as a lump sum investment. Currently, AMC SIP investment dates allowed are 1st, 5th, 10th & 15th of a month. If you set any other date, the order won't go through.
• The traditional SIP mode is available for some funds. This is for funds that have stopped taking lump sum investments due to excess fund size. The facility is available only on the Coin mobile app.

Step by Step guide of starting a Mutual Fund SIP

Mutual fund SIP is the best way to invest in equity markets. It is especially useful for those who are new to markets and lack the expertise to select the right stocks. Such people can invest in Mutual Fund SIP with a small amount and gain the benefits of investing in equity.

Mutual Funds SIP also saves investors from timing the market. As you invest over a long period of time, your investments in the market up and down conditions average out. You buy more units with the same fund when markets are down and buy fewer units when markets are up. So, over a period of time, your investments balance out.

Mutual Fund SIP is also useful for people who:

• Don't have a lump sum amount to invest
• Just started their career and want to save some money
• Want better returns than bank deposits and are willing to take some risks
• Want to create funds for their life goals like child's education, marriage, and retirement
• Want to inculcate financial discipline in their life

3 Easy Steps to start a Mutual Fund SIP on Zerodha Coin

1. Login to the Coin platform. On the home page, go to the search bar available at the top of the page and type the name of your fund or fund house.
2. On the fund page, click on 'Direct SIP'.
3. In the order window, enter your investment details. Enter initial investment, frequency, installment and the total number of installments. Click on 'Start SIP' and 'confirm'.

Conclusion

Zerodha mutual fund services are excellent for investors looking to cut down their investment costs. They can easily save 1 to 2% in commission as Zerodha doesn't charge any fees or commissions for its services. However, the platform doesn't offer research or recommendation services. This may make it difficult for beginner investors to choose the fund as per their financial goals and needs.

Read more about Zerodha

• Visit Zerodha Website to open instant account (in 15 minutes).
• How to trade, buy and sell options in Zerodha Kite?
•   Zerodha Telephone Code (for Customer Support Calls)
•   Zerodha CDSL TPIN(for Demat Sell Transaction)
•   Zerodha GTT Order (GTC Equivalent) Explained
• Zerodha Kite Review - Most simple yet powerful trading platform
• Zerodha Varsity Review (Module, App & Certificate)
• Zerodha Coin Review (Mutual Fund Investment)
• Zerodha Options Trading Review
• Zerodha Fund Transfer Review (How to deposit & Withdraw funds?)
• The cost of trading with Zerodha (Explained with Example)
• Zerodha Partner Program Review (Refer and Earn)
• How can I refer a friend to Zerodha?
• 20 Reasons to Trade with Zerodha
• Zerodha Kite Review
• Open Zerodha Demat Account online in just 15 minutes.

Frequently Asked Questions