How to Trade on Zerodha Coin?

Zerodha, a prominent broker in India, introduced 'Zerodha Coin,' pioneering the provision of Direct Mutual Funds through its platform. Available on both mobile app and web versions (Android & iOS), Zerodha Coin is offered free to all Zerodha customers.

Zerodha Coin provides access to direct mutual funds from various esteemed Asset Management Companies, including Axis Mutual Fund, BNP Paribas, DSP, and Edelweiss. You can choose from several Mutual Fund Types: Equity, Debt, Liquid, and Hybrid Fund; Large, Mid, and Small cap funds; ELSS (Equity Linked Savings Schemes); and fund of funds. In this post, let's dive deeper into the Zerodha coin and discover everything about it.

What is Zerodha Coin?

Zerodha coin is an order collection platform enabling the direct purchase of Mutual Fund Online from asset management companies without any commission pass-through. This platform consolidates your investments, including mutual funds, stocks, currencies, Bonds, and more, within your Demat account, providing convenient access to all your financial assets in one centralised location.

Features of Zerodha Coin

Jotted down below are some vital features of Zerodha Coin:

• Facilitates investment in direct mutual funds.
• Enables seamless initiation, cessation, or modification of SIP investments at your convenience.
• Offers a comprehensive statement featuring visual representations, profit and loss insights, and additional details.
• Delivers entirely online services for user convenience.
• User-friendly interface with straightforward navigation.
• Incorporates an e-mandate Facility for added ease of use.

How to Open a Zerodha Coin Account Online?

To access Zerodha Coin, open a Zerodha trading and Demat account first. Here's the step-by-step process for opening a Zerodha Coin online account:

• Visit the Zerodha website and register using your mobile number.
• Enter the 6-digit OTP sent to your mobile number and click "Confirm."
• Verify your email address by entering the 6-digit OTP received in your email.
• Provide your PAN number and Date of Birth, then click "Accept and Continue."
• Pay the account opening fees.
• Sign in to your Digilocker account and authorise Zerodha to access your Aadhar details.
• Enter your Bank account information and background details.
• Read and agree to all instructions by checking the respective checkboxes, then proceed.
• Complete the online In-Person Verification (IPV).
• Upload scanned copies of your Aadhar card, PAN card, cancelled cheque, signature photo proof, and Income proof (required only for derivatives trading).
• Complete E-sign with Aadhar.
• Verify the email address by entering the security code sent to your email.
• Review the account opening form and click "Sign Now."
• Enter your Aadhar number and the OTP, then click "Submit" to finalise the online account opening process.
• Once the account is opened, you will get an email confirmation. It typically takes about 24 hours for Zerodha Coin to become active on your profile after opening your Zerodha account.

What are the Benefits of Using Zerodha Coin for Investments?

Here's why the Zerodha coin stands out:

• Commission-Free Direct Funds: Coin enables Investing in direct funds without any commission charges. Unlike regular plans, direct plans don't include distributor commissions in their expense ratios, leading to potentially higher investor returns.

• Step-Up SIP Feature: With Coin, you can automate SIP increments by a predetermined percentage, optimising investment growth over time.

• Flexible SIP Management: Coin allows easy initiation, pausing, or termination of SIPs, along with the flexibility to adjust SIP amounts as needed.

• NAV Order Tracking: You can access over 41 Asset Management Companies (AMCs) and 2200 funds, with the option to place orders based on Net Asset Value (NAV), similar to stock trading.

• Electronic DEMAT Format: Mutual funds held in electronic DEMAT format offer a consolidated portfolio view, simplifying management and enabling easier pledging or loan collateralisation if required.

• Comprehensive statements: Coin provides a consolidated statement featuring profit and loss insights, aiding in tax Deduction claims under Section 80C of the income tax Act, 1961.

• Ease of Claiming: The DEMAT format facilitates easier claim processing for dependents in case of the investor's demise, which is particularly beneficial for those with multiple AMC investments.

• Detailed Insights: You can explore the sectors and companies where their fund house invests, facilitating informed decision-making and fund comparison.

Fees Associated with Investing in Securities via Zerodha Coin

The charges for investing in securities through Zerodha Coin are outlined below:

Know that Zerodha doesn't charge any Depository Participant (DP) charges for investing through Coin. There are no AMCs associated with using Coin. This is because all investments made through Coin are held in DEMAT form.

How do you Initiate a Systematic Investment Plan (SIP) on the Coin App?

Here's a step-by-step guide:

• Choose the desired fund and tap on SIP.
• Input the Initial investment amount and instalment amount.
• Opt for the frequency (Weekly, Bi-weekly, Monthly, or Quarterly).
• Check the Automatic step-up box, specify the Increment percentage, and select the month and date for automatic SIP increment. To disable automatic step-up, simply uncheck the box.
• Click on Create SIP and then confirm by selecting Create.
• Proceed to Pay Now and complete the payment process.
• To ensure that a SIP commences within the current month, it must be configured at least two days before the intended execution date. For instance, if the desired execution date is the 5th of each month, the SIP should be set up on or before the 3rd. Setting up the SIP on the 4th with an execution date of the 5th will result in it commencing from the following month.

How to Make Final Payments for Purchase Orders on Coin?

Funds within the Zerodha account are ineligible for mutual fund investments. Instead, funds for such purchases must be transferred from the primary or secondary bank accounts linked to Zerodha to the Indian Clearing Corporation Ltd (ICCL), a subsidiary of BSE. The updated payment process on the Coin app is as follows:

• UPI can be used for payments up to Rs. 1,99,999.
• Net banking is applicable for payments equal to or exceeding Rs. 2 lakhs. Payments from secondary bank accounts are limited to NEFT or RTGS, while those from primary bank accounts can be made via UPI, NEFT, or RTGS.

How to Enable Zerodha Coin?

The Coin is automatically activated for all users with a Zerodha DEMAT account. However, the Coin account may be marked inactive under the following circumstances:

• If the Zerodha account was recently opened, Coin activation occurs automatically within 24 hours of account opening, requiring no client action.
• For accounts opened before September 15, 2015, where the DEMAT account is with IL&FS, activating Coin necessitates switching the DEMAT account from IL&FS to Zerodha.
• If a Zerodha Trading Account is opened without a DEMAT account, activating Coin mandates opening a Zerodha DEMAT account.
• If the Zerodha account is dormant, clients must undergo a re-KYC process to reactivate Coin.
• The Coin is exclusively activated for NRI non-PIS account holders and remains inactive for other NRI account holders.

Remember that per regulatory requirements, order placement is disabled for clients whose PAN is not linked to Aadhaar. Even after successfully linking Aadhaar with PAN, it must be updated in the IT records, which may take up to 7 working days.

Zerodha Coin Customer Support

Zerodha does not maintain a dedicated customer support channel specifically for Coin. For assistance regarding mutual fund investments, you can contact Zerodha support. You can also submit a ticket through the Zerodha support portal accessible via Zerodha Kite login credentials.

• General inquiries: 08047181888 / 1999; 08071909543 / 9545

• Account opening assistance: 08047192020 / 08071175337

Conclusion

Zerodha Coin revolutionised the mutual fund industry by offering direct mutual funds with no subscription charges and unlimited free investment. Unlike regular plans that entail hefty commission charges, Coin eliminates such requirements, ultimately leading to greater investor returns. With a wide range of schemes available, seamless portfolio tracking, hassle-free investment at one's fingertips through the Coin app, and free redemptions, Zerodha Coin stands out as the premier platform for mutual fund investments.

Frequently Asked Questions (FAQs)

1. Is it possible for non-individual account holders to engage in mutual fund investments through Zerodha Coin?

A: Indeed, non-individual account holders can utilise NEFT or RTGS for this purpose. To do this, navigate to the "Buy" section. Input the desired amount. Proceed by clicking on "Buy now." Confirm your transaction. Initiate the payment via the net banking portal using the account details provided on Coin.

2. Is it allowed for Non-Resident Indians (NRIs) to participate in mutual fund investments via Coin?

A: NRIs can partake in mutual funds through Coin, given they possess a non-PIS NRI account with Zerodha.

3. Can I transition from one scheme to another within the same AMC on Coin?

A: Direct switching between two distinct schemes of the same AMC isn't feasible, given that investments on Coin are directed towards direct mutual funds stored in DEMAT format. However, you can redeem one fund and purchase another within the same AMC.

4. How can I verify the mandate status on Coin?

A: To verify the mandate status on Coin, simply navigate to the Mandates section. After initiating the mandate registration process, you'll initially see a Processing status. This status will be updated to either Failed or Successful within three working days based on the verification outcome. If the mandate registration is incomplete, it will be marked as Failed. Please note that Failed mandates are automatically removed and cannot be monitored on Coin.

5. How do I designate a nominee for mutual fund holdings on Coin?

A: As mutual funds obtained via Coin are held in dematerialised (demat) form, the nominee assigned to the demat account automatically extends to the mutual funds. Therefore, there's no necessity to designate a nominee separately for mutual funds.