(Last Updated: April 9, 2019)

How to Invest in Direct Mutual Funds?

  • @ftForumMod The Advisory roles are still required even though the clients are well knowledgeable in terms of investments. Only the difference is that the RIA's like Wealth Ladder Direct is going to provide the knowledge transition and charge a client instead of just getting paid by the AMC's. This makes lot more difference to the clients as well. However, this works only with HNI clients and may not work for retail investors.

  • I have been using Zerodha Coin to invest in direct mutual funds. I have used MFUtility in the past but zerodha coin's UI is next to none. Paying 50 odd rupees per month that zerodha coin charges is worth the feature set that they deliver for that amount.

  • To compete with kuvera and others, zerodha has gone away with charges on coin.
    Now coin is completely free.
    (As the mail I got, devil is in details or not, I have to check)

  • Zerodha is gone away with Rs50 a month fee now.
    Now they no more charge any thing for direct investments to mutual funds.

  • @prateek Yes, I too have heard that Zerodha coin has done away with the fee of Rs.50 they used to charge earlier for direct investments above certain limit. It's completely free now! A tough competition for other direct fund platforms now. They are leaving no stone unturned to grow bigger and attract more investors.

  • But remember, to use Zerodha Coin, you have to create a demat account with it Zerodha. Whose fees is 300+GST per year.

  • Well.. so yeah race to the bottom has happened sooner than later .. Zerodha coin is zero fees now. It seems like Zerodha thinks that getting MF people with zero fees can hook the people to trading(The only way zerodha makes money as of now is trading, not even delivery/investment). Lets see how their assumption goes.

  • Yes,

    MFutility is the best. I think that we should use MF utility.


  • Well Sure,

    If you can bear with the user interface of MFUtility, its the best. Most of the online platforms also use MFUtility only.

    Also, business model of most of the platforms is not clear so I believe that 80% of them would not be able to survive. MFU will stay forever.

  • @jatinkhanna nice article

  • Experienced investors who are aware on how mutual funds perform can directly visit the website of AMC's to invest in mutual funds directly. SBI Mutual Funds , Franklin Templeton Mutual Funds etc allow investors to invest in direct mutual funds through their website portals. New or novice investors can hire financial planners that can help them create a mutual fund investment portfolio suitable for them.

  • @vikas_nair one of the big downsides of investment with individual AMCs is the hassle to maintain multiple accounts. thats when the platforms like zerodha coin, MFU etc help.

  • A mutual fund investing is a pool of savings contributed by multiple investors. The common fund so created is invested in one or many asset classes like equity, debt, liquid assets etc. It is called a ‘mutual’ fund because all risks, rewards, gains or losses pertaining to, or arising from, the investments made from this savings pool are shared by all investors in proportion to their contributions.

  • MFUtility is not a useable platform at all. It is very confusing to use. I could not figure out for quite some time that I have to send the ECS to them. There was no communication or reminder either.
    Zerodha Coin might still be the best choice, IMO

  • @jatinderchd Yes, I have been using Zerodha coin. It is a highly popular direct mutual fund platform. I also heard about it from my friends. The best part, you can buy direct funds online on Coin for free. It's a friendly and very easy to use platform.

  • Paytm Money is really impressive app. Their recommendations and portfolio along with its UI are good ones..
    The best part is that you can still invest when you didn't register for Auto-Pay in SIP. I do hope they keep coming up for new innovations.

  • Those who are recommending coin, is it true that they need me to open demat account first? and for that, we have to pay demat charges and its amc yearly as well

    I like Paytm too but i don't like when money go to paytm first before reaching to amc directly.

    MFU design is very okayish but internally, it's much better than all others.
    Is there any app which has process like MFU and design like Paytm?

    There was a Wealthtrust which was perfect, unfortunately it was later merged to Orowealth, I don't like this idea. Sigh!

  • @Tarun It is very difficult to make money from direct mutual fund platforms. We will see many of them close/merge with existing players.
    Also, Indian user doesn't like to pay for advice historically.

  • @Tarun Yes, Zerodha coin has a requirement for Demat and an annual fee of something like Rs.500 only. I highly recommend not to consider the fees given their service and great product. Direct MF platforms which are not brokers are never going to be as great as big brokers like Zerodha.

    Also, Having a demat gives you a holistic view of all your investments and you can track them easily.

  • Guest said in How to Invest in Direct Mutual Funds?:

    @Tarun It is very difficult to make money from direct mutual fund platforms. We will see many of them close/merge with existing players.

    It's not very difficult for long term actually if you understand how Mutual Fund works. Take equity MF for long term alone, otherwise take debt funds which might satisfy your taste.

    Guest said in How to Invest in Direct Mutual Funds?:

    Direct MF platforms which are not brokers are never going to be as great as big brokers like Zerodha

    May I ask what is the difference between Paytm Money and Zerodha coin?
    Paytm does not charge anything, no demat required, no annual charges, yet give services the exact same as Zerodha. Why are you in blind love with Zerodha?

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