Mutual Fund: How you can invest in mutual funds through Zerodha Coin

Mutual Fund: A mutual fund is a collection of funds that are professionally managed by a fund manager who collects money from a group of participants and then invests money in stocks, bonds, money market instruments, and/or other assets. By determining a scheme's "Net Asset Value" (NAV), the income or profits from this collective investment are distributed equally among the investors after taking into account any applicable costs and taxes.  

In simple language, a mutual fund is a collection of money that many different investors pool together who have similar interests. 

Mutual Fund: How to invest in a mutual fund? 

Option 1: One can invest in mutual funds by filling out an application form along with a cheque or bank draft at the branch office or designated Investor Service Centres (ISC) of mutual funds or registrar & transfer agents of the respective mutual funds. 

Option 2: The investor can also invest through the websites of the relevant mutual funds via online mode. 

Option 3: Additionally, one may opt to invest with the help of a financial intermediary, i.e., a Mutual Fund Distributor registered with AMFI (Association of Mutual Funds in India). 

In this article, we will discuss how to invest in mutual funds through stock brokerage firm Zerodha's platform — mf.zerodha.com. 

Mutual Fund: Investing through Zerodha Coin 

With the help of the order collecting platform Coin, you can directly purchase mutual funds online from asset management firms without paying any commission. Through this app, you can avail all your mutual funds, equities, currencies, bonds, and other assets at one place.

Benefits of Zerodha Coin 

• You can invest directly in funds.
• The step-up SIP functionality allows you to automatically raise your SIP contribution by a specified percentage.
• You can compare one mutual fund with another.
• You can also view sectors and companies that fund house invests in. 

Buy mutual funds through Zerodha: A step-by-step guidance 

• First, go to the mutual fund platform mf.zerodha.com. 
• Search for any fund. 
• Analyse historical performance. 
• Then click on 'buy' for a lump sum or one-time investment, and SIP (systematic investment plan) if you intend to invest small amounts of money at fixed intervals automatically. 
• You are just one click away from buying any mutual fund after logging into the platform. To login use your trading (Kite) login ID and password. 

For beginners, it is important to note that unlike stocks, where the price varies constantly, the NAV (Net Asset Value) price of mutual funds only changes once at the close of each trading day. Orders placed to buy or redeem a fund are typically executed based on the NAV price of the next trading day. 

Zerodha fees 

Like stock investments, mutual fund investment is also free on Zerodha.