Comment on Introducing Coin - our Direct Mutual Fund Platform

Aravindan Selvaraj commented on 29 Mar 2017, 12:55 PM

For all those who are wondering the advantages of coin.zerodha over mf.zerodha, here I present my understanding and analysis.
1. The NAV of direct is different from NAV of Regular. For eg. NAV of Reliance Tax saver (ELSS) fund on 27th March 2014 was 27.92 for direct and 27.72 for regular.
2. So, Assume, I had invested Rs.50,000 on 27th march 2014, I would have got 1790.831 units in direct and 1803.752 units in Regular. (This seems disheartening. pls wait.)
3. Now, after 3 years, on 28th March 2017, NAV stands at 55.75 for direct (99.68% increase from 27.92) and 54.07 for regular (95.05% increase from 27.72).
4. So, had I opted for direct option, my investment value today(28-march-2017) is Rs.99838.8. In regular option, my investment value today is Rs.97528.8.
5. Thus, I had lost nearly Rs.2309 by not availing Direct option.
6. Now, for these 36 months, zerodha is asking for a commission of Rs.1800 (36*50/month), for providing us the single point contact for all your MFs.
* Here I assumed two things, one, I didn’t make any investment for the next three years, which is not the actual case. Two, the fee of Rs.50 remains same for three years, which may not become true.
7. My take: If you are a fan of a single MF only, then go to the site of that MF itself and invest. If you are like me, on diversifying the MFs, but lazy enough to go to their sites individually and track, then, coin.zerodha is a good option.
8. My suggesstion: I hope nitin will work out on the same calculation on SIP and show the people about the influence of coin.zerodha. (Until then, I cannot recommend coin.zerodha for my SIP investor friends).

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