Mutual funds are one of the most popular investment options in India. They offer diversification, professional management, and convenience to investors. However, choosing the right mutual fund platform can make a big difference in your returns and experience.
Zerodha is an online discount broker that offers a platform called Zerodha Coin to invest in mutual funds directly from asset management companies (AMCs). This means you can save on commissions, fees, and taxes that are usually charged by intermediaries such as banks, brokers, or distributors.
In this blog post, we will guide you through the process of investing in mutual funds through Zerodha in a step-by-step manner. By the end of this post, you will be able to:
- Open a Zerodha account and complete the KYC process
- Log in to Zerodha Coin and add funds to your account
- Choose a mutual fund scheme that suits your goals and risk profile
- Place an order for lump sum or SIP investment
- Track and manage your mutual fund portfolio
So, let’s get started!
Step 1: Open a Zerodha Account
To invest in mutual funds through Zerodha, you need to open a Demat account with them. The process is simple and can be completed online. You will need to provide your personal and bank details, PAN card, and other KYC documents.
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You can follow these steps to open a Zerodha account:
- Visit Zerodha’s website and click on “Open an account”
- Enter your mobile number and verify it with an OTP
- Enter your PAN number and date of birth
- Pay the account opening fee of Rs 200 for equity and Rs 100 for commodity (optional)
- Upload your scanned copies of Aadhaar card, bank statement, cancelled cheque, signature, and income proof (optional)
- E-sign the application form using Aadhaar OTP
- Complete the IPV (in-person verification) by recording a video of yourself
- Wait for the account activation email from Zerodha
Once your account is activated, you will receive your login credentials for Zerodha Kite, which is the trading platform for stocks, currencies, and derivatives. You can also use the same credentials to log in to Zerodha Coin, which is the platform for mutual funds.
Step 2: Log in to Zerodha Coin
Zerodha Coin is a web-based platform that allows you to invest in mutual funds directly from AMCs. You can access it from any browser or download the app from Google Play Store or App Store.
To log in to Zerodha Coin, you need to:
- Visit Zerodha Coin’s website or open the app on your phone
- Enter your Zerodha login ID and password
- Enter the PIN or OTP that you have set for security
Once you are logged in, you will see a dashboard that shows your mutual fund portfolio, balance, orders, SIPs, etc. You can also explore various mutual fund schemes by category, AMC, rating, etc.
Step 3: Choose a Mutual Fund Scheme
Choosing a mutual fund scheme is an important decision that depends on various factors such as your risk appetite, investment horizon, financial goals, etc. You should do some research and analysis before investing in any scheme.
Zerodha Coin provides some useful tools and resources that can help you compare and evaluate different mutual fund schemes. You can:
- Use the filters to narrow down your search by category, AMC, rating, etc.
- Use the search bar to find a specific scheme by name or code
- Click on any scheme to see its details such as NAV, returns, expense ratio, portfolio, etc.
- Read the scheme information document (SID) and key information memorandum (KIM) to understand the objectives, risks, fees, etc. of the scheme
- Check the historical performance and growth of the scheme over different time periods
- Read the reviews and ratings of other investors who have invested in the scheme
After doing your homework, you can select one or more schemes that match your criteria and preferences.
Step 4: Place an Order
Once you have selected a mutual fund scheme, you can place an order to invest in it. You can invest in two ways: lump sum or SIP.
Lump sum investment means investing a fixed amount of money at once in a scheme. SIP (systematic investment plan) means investing a fixed amount of money at regular intervals (such as monthly or quarterly) in a scheme.
To place an order for lump sum or SIP investment, you need to:
- Click on the “Buy” or “SIP” button next to the scheme name
- Enter the amount or units that you want to invest
- Choose the payment mode (UPI, net banking, or NEFT/RTGS)
- Confirm the order details and click on “Place order”
- Complete the payment process and wait for the confirmation
You can also modify or cancel your order before it is executed. You can view your order status and history on the “Orders” tab on Zerodha Coin.
Step 5: Track and Manage your Investments
After placing your order, you can track and manage your mutual fund investments on Zerodha Coin. You can:
- View your portfolio summary and performance on the “Dashboard” tab
- View your holdings and transactions on the “Portfolio” tab
- View your statements and reports on the “Reports” tab
- Redeem or withdraw your mutual fund units on the “Redeem” tab
- Modify or stop your SIPs on the “SIPs” tab
You can also monitor and review your mutual fund performance regularly and make changes if needed. Some of the best practices for managing your mutual fund portfolio are:
- Diversify your portfolio across different categories, AMCs, and sectors
- Rebalance your portfolio periodically to maintain your asset allocation
- Switch to better performing schemes if your current schemes are underperforming
- Stay invested for the long term to benefit from compounding and market cycles
Investing in mutual funds through Zerodha is a smart and convenient way to grow your wealth. You can save on commissions, fees, and taxes that are usually charged by intermediaries. You can also enjoy the benefits of direct plans, online access, and Demat holding.
To invest in mutual funds through Zerodha, you need to open a Zerodha account, log in to Zerodha Coin, choose a mutual fund scheme, place an order, and track and manage your investments.
So, what are you waiting for? Start investing in mutual funds through Zerodha today and achieve your financial goals!
If you have any questions or queries, feel free to contact at [email protected] or call at 080 4040 2020.