Are there any discount brokers offering Good till cancel facility? I know Zerodha was trying to get this - but dont know if they offer it now. @Nikhil.A
I completed my 25L limit(Short term turnover) and to my surprise they started charging .5%. On complaining they are ready for .4% that also based on approvals. This is cheating by HDFC. I accepted it but mostly will be using Zerodha or Motilal.
Who is the best broker for investing in direct mutual funds?
I saw coin-by Zerodha, but they will be charging platform fee of Rs.50 per month for holding above Rs.25000, which makes it around Rs.600 per year. (Overall Rs.900 annually including AMC).
Do other brokerage firms also charge this fee for investing in direct mutual funds or this is specific to Zerodha? @Nikhil.A
I have few colleagues who are interested in mutual fund investments.
You should be aware of the this Coin thingy.
Your MF units are through demat. Thus apart from this Rs 900 (plus 18% GST), you will have to incur CDSL charges (DP charges) of Rs.13.5 + 18% GST (irrespective of quantity per day) when you sell.
Your MF units are through demat. This may have advantages or disadvantage but I prefer investing directly with AMCs.
You can invest free direct options online through: (but not limited to)
- Directly through AMCs (online or offline)
- MF Utility
- CAMS or Karvy
While I’m not against Coin, I feel one should be aware of what we are doing going through them.
but u can negotiate and get .25 on regular basis based on approvals without any package provided u meet their past turnover.
You can’t be direct if you are going through a broker. Direct means dealing directly with AMC without any intermediary. You can buy mutual funds directly from AMC website or visiting their office. That’s the cheapest option to buy mutual funds.
We’re working with our OMS vendors for this. Isn’t live right now, but we’re trying to hurry them on it.
Most brokers offer only regular mutual funds where they make money off commissions from the AMC. As an investor, for you, this is a downside. It’s actually quite significant in the long run. For direct MF, you’d have to go invest on the AMC website (these investments are not in demat). Here, the downside is that your portfolio is scattered across different platforms though there is no fee.
With Coin, we’re providing a platform that allows you to invest with different AMCs on a single platform. Also, since your investments are with your broker, even your equity investments are on the same platform. Makes management very easy.
Thanks a lot @drgrudge
That was enlightening for me. I didnot know about MFs also getting deposited to Demat.
I believe my colleagues wanted more of convenience, something like a single portal as they wanted to start an SIP. I will suggest them to use AMC websites directly if they want less costs in the long run instead of convenience.
@Nikhil.A Thanks for sharing the details. I have two of the friends who use Scripbox, as Scripbox says they have zero fees. One more who was joining them, I convinced him to open a Zerodha account as I believe Zerodha will offer the best prices for sure.
Scripbox does indeed charge no fees for execution, but that is because they sell regular funds where they earn a commission on the invested amount for as long as you stay invested. Whenever you or your friends avail a service that is labelled free, ask yourselves why it is free and whether the business stands to gain anything out of this. If the answer is no, then there have to be some fees that are not apparent. And if this isn’t told to the customer upfront, the only reason to keep that information from you is that you, as a customer, stand to lose something if you decide against availing said service because of this charge. As Zerodha, that’s what we’ve always stood for. If there are any charges, we make sure that we talk about them on our platforms/website/literature so that a user can take informed decisions. As a business, we believe that transparency when it comes to costs is paramount.
So, Nikhil, what you are saying is that as investment corpus grows, the fees will grow in tandem for Scripbox as they do not sell direct funds.
While via Zerodha Coin,
- Are the funds sold direct or regular?
- Will the fee not grow as investment grows?
Absolutely, Abhinav. In fact, you can see the amount you save by investing in a direct fund vs. the regular counterpart of the same on Coin on the fund page. You can enter an expected return percentage for the fund, select the number of years you intend to stay invested and select regular or lump sum amounts and you’ll see that the savings on Coin are significantly higher compared to the flat fee you pay for the platform.
- The funds sold by most platforms, including Scripbox, since are regular. On Coin, they are direct.
- The fee is a flat charge of Rs. 50 per month, for investments above 25k. For sums below this number, you don’t even pay that.
Great, Nikhil. Thanks for the clarification.
Precisely @Nikhil.A ! That is why I like Zerodha services and have recommended and sometimes forced my friends and relatives to open an account with Zerodha.
I just hope that this thought and practise remains forever.
Asking one more doubt on behalf of my friend for clarification:
If I invest Rs.25k in direct MFs and later additions of the lumpsum and/or SIP happens in regular MFs, then I don’t incur any platform charges, right?
My total expense remains AMC of Rs.300 + DP charges (Rs.13.5 +18% GST) when I sell.
Will there be any other charges from DP?
That’s right. However, it’s not if your direct investments are 25k, in that case, you’re charged. Direct investments are free until 25k, so 24.999k is free, but 25k is charged.
Also, on a more personal note, I don’t think investing in regular funds just to avoid a 50 rupee platform fee is a good idea. Honestly, we don’t stand to lose much in this case since we still make commissions from the regular investments, but I’d advise your friend to go for direct investments.
DP charges for MF is 5.5+GST, not 13.5+GST.
There are 2 issues that I will appreciate if you can address.
I just received my Transaction With Holding Statement for November 2017. Why does it take 24 days to send a statement by email? Even NSDL sends CAS within 10 days of month end with all transactions during the previous month for all the demat accounts. If there is any error, the statement says it has to be reported within 30 days of statement date. There is no statement date mentioned on the statement so I am not sure how do I calculate the 30 day period. Does the 30 day period start after I receive the email or it starts from end of the month for which the statement is prepared (Nov 2017 in this case)? In that I case I get only 6 days to report any error which is too short.
DP ID mentioned on the Transaction With Holding Statement is wrong. Client ID is mentioned as DP ID. There is a DP Id in the statement header which does not match with DP ID mentioned in the statement body.
i strongly suggest you visit https://www.unovest.co/ which is run by Vipin Khandelwal. The site is great, ABSOLUTELY FREE for a great number of things and allows you to invest in Direct schemes of all MFs that are available on MF utilities (barring Mirae, all top houses are available). He writes a great Blog and is very hands-on with his site. He will respond personally within 60 min of a query. I have used his site for close to a year and am delighted with his website
The best thing is the consolidated look across fund houses and simplification of taxes in one go
He has a paid service if you seek wealth building inputs. I have not gone there as yet but my friends who have are happy with that. I used to swear by ValueReasearch earlier but now am an equally big fan of Vipin, who by the way differs from Value research on a number of things
Had a worst experience when opening an account with you. Your IT is highly deficient and your support team does not hear concerns from customers. When I opened an account, I entered correct mobile number. However your KRA fetch changed this number and has incorrect number on file. Your IT is poor and shows only last 4 digits when reviewing the application. Hence the issue is caught after the application is complete. Please show complete number if KRA fetch has discrepancy. Now your support team is unable to change the number and is asking for Rs.50 to change it. Issue is on your side and poor support from you.
@peekaye07 Thank you for sharing your views and experience with Unovest. I will surely have a look at it and forward this to my friends.
It surely seems interesting as they are offering "Unlimited transactions in direct plans of mutual funds; Add 1 Common Account Number; View awesome summary reports and analysis."
It would be good to know below:
As in are they offering this because they are starting up / limited period offer? Or will be make us stick/habituated to their platform and take paid services later? Or will this service of investing in direct mutual funds will truly be free forever and for unlimited transactions. If the last one is true then I am sure this will click to many people.