Introduction
Investing in mutual funds has become one of the most popular ways to grow wealth in India, and platforms like Zerodha Coin make the process simple and cost-effective. Zerodha, India’s leading stockbroker, offers a direct mutual fund investment platform known as Coin, which allows investors to buy zero-commission direct mutual funds.
If you’re wondering how to invest in mutual funds in Zerodha, this step-by-step guide will walk you through everything you need to know.
Why Choose Zerodha for Mutual Fund Investment?
Before diving into the process, let’s understand why Zerodha Coin is a preferred choice for many investors:
✅ Zero Commission: Invest in direct mutual funds, which means higher returns compared to regular mutual funds. ✅ No Lock-in Period: Unlike some traditional platforms, Zerodha allows you to redeem your investments anytime. ✅ User-Friendly Interface: The app and web interface make investing smooth and hassle-free. ✅ Integrated with Demat Account: If you are already a Zerodha user, you can manage stocks and mutual funds in one place.
Step-by-Step Guide to Investing in Mutual Funds on Zerodha
Step 1: Open a Zerodha Account
If you don’t have a Zerodha account yet, you’ll need to open one.
- Visit Zerodha’s official website
- Click on Sign Up and enter your mobile number.
- Complete KYC verification by uploading PAN card, Aadhaar, and bank details.
- Once your account is approved, you can log in to Zerodha Coin.
Step 2: Log in to Zerodha Coin
- Visit coin.zerodha.com or download the Coin App from the Play Store or App Store.
- Use your Zerodha credentials to log in.
- The dashboard will show various mutual fund categories.
Step 3: Explore Mutual Funds and Select One
- Use the search bar to find mutual funds by entering the fund name or AMC (Asset Management Company).
- You can also browse based on categories:
- Equity Funds (for long-term wealth creation)
- Debt Funds (for stable returns)
- Hybrid Funds (a mix of equity & debt)
- Index Funds (low-cost passive investing)
- Click on a fund to view performance history, NAV (Net Asset Value), and past returns.
Step 4: Start Investing in a Mutual Fund
Once you’ve selected a fund, you’ll see two options:
- Lump Sum Investment: Invest a one-time amount.
- SIP (Systematic Investment Plan): Invest a fixed amount monthly.
To proceed:
- Click on Invest Now.
- Enter the investment amount.
- Choose Lump Sum or SIP.
- Select your payment mode (UPI, Net Banking, or Auto-Debit).
- Confirm the transaction.
Step 5: Track and Manage Your Mutual Fund Portfolio
- Go to the Dashboard on Coin to track your investments.
- You can see your returns, NAV updates, and historical performance.
- If needed, you can redeem or increase SIP amount anytime.
Taxation on Mutual Funds in Zerodha
It’s important to know how mutual fund investments are taxed:
- Equity Mutual Funds:
- Short-term (<1 year): 15% tax on capital gains.
- Long-term (>1 year): Tax-free up to ₹1 lakh, then 10% beyond ₹1 lakh.
- Debt Mutual Funds:
- Taxed based on your income slab (as per new taxation rules in 2023).
Conclusion: Should You Invest in Mutual Funds via Zerodha?
Zerodha Coin is an excellent platform for direct mutual fund investments with zero commission fees. If you are looking for cost-effective, flexible, and transparent investing, Zerodha is a great choice.
💡 Pro Tip: Start with a small SIP in an index fund and gradually diversify your portfolio.
Have more questions about Zerodha mutual funds? Let us know in the comments!
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