How to Buy MF in Zerodha:- A Step-by-Step Guide

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How to Buy Mutual Funds in Zerodha Coin: A Step-by-Step Guide

Why Zerodha Coin is a Game-Changer for Mutual Fund Investors
Investing in mutual funds has never been easier, thanks to platforms like Zerodha Coin. Whether you’re a seasoned investor or a beginner, Zerodha Coin simplifies the process of buying and managing mutual funds. In this guide, I’ll walk you through everything you need to know about using Zerodha Coin to invest in mutual funds. From lump sum investments to SIPs, I’ve got you covered.

Understanding Zerodha Coin and Its Features
Before we get into the nitty-gritty, let’s understand what Zerodha Coin is and how it works.

What is Zerodha Coin?

Zerodha Coin is a dedicated platform for mutual fund investments, separate from Zerodha’s stock trading app, Kite. While Kite is used for trading stocks, futures, and options, Coin focuses exclusively on mutual funds.

Key Features of Zerodha Coin

  • Direct Mutual Funds: Coin allows you to invest in direct mutual funds, which have lower expense ratios compared to regular funds.
  • Zero Commission: Zerodha doesn’t charge any commission for mutual fund investments.
  • SIP and Lump Sum Investments: You can choose between systematic investment plans (SIPs) or one-time lump sum investments.
  • User-Friendly Interface: The app is intuitive and easy to navigate, even for beginners.

Step 1: Setting Up Your Zerodha Coin Account
Before you start investing, you need to set up your Zerodha Coin account. Here’s how:

Download the Coin App

  • Visit the Google Play Store or Apple App Store and download the Zerodha Coin app.
  • Log in using your existing Zerodha credentials (same as Kite).

Link Your Bank Account

  • Ensure your bank account is linked to your Zerodha account. This is crucial for making payments.
  • Note: Due to SEBI regulations, Coin now uses a separate ledger for mutual fund transactions, so you’ll need to transfer funds specifically for Coin.

Step 2: Exploring Mutual Fund Options on Zerodha Coin
Zerodha Coin offers a wide range of mutual funds to choose from. Here’s how to explore them:

Using the Search Function

  • Open the Coin app and go to the “Investments” tab.
  • Use the search bar to find specific mutual funds by name or category.

Browsing by Categories

  • Coin categorizes mutual funds based on their type (e.g., equity, debt, hybrid, ELSS).
  • For example, if you’re looking for tax-saving funds, you can explore the ELSS category.

Step 3: Making a Lump Sum Investment
A lump sum investment is when you invest a large amount of money at once. Here’s how to do it on Zerodha Coin:

Selecting a Mutual Fund

  • Choose a mutual fund from the list. For example, let’s say you select an ELSS fund for tax savings.
  • Click on the fund to view its details, including the lock-in period (if any).

Placing the Order

  • Click “Buy More” if you already own the fund or “Invest” if it’s your first time.
  • Enter the amount you wish to invest (minimum ₹500).
  • Confirm the order and proceed to payment.

Making the Payment

  • Choose your preferred payment method (UPI, net banking, etc.).
  • Approve the payment request on your UPI app or net banking portal.
  • Once the buy order is successful, your order will be processed.

Example: If you invest ₹1,000 in a multicap mutual fund, and your order is placed after the cutoff time (often 2 PM), the units will be distributed according to the NAV (Net Asset Value) of the next day.

Step 4: Setting Up a Systematic Investment Plan (SIP)
SIPs are best mode to kick start your investment journey and build wealth over time. Here’s how to set one up on Zerodha Coin:

Choosing a Mutual Fund for SIP

  • Go to the “SIP” section in the app.
  • Select a mutual fund and click “Start SIP.”

Configuring Your SIP

  • Set the SIP amount (minimum ₹500).
  • Choose the frequency (weekly, monthly, etc.).
  • You can choose to regularly raise the quantity of your SIP by turning on the “Step-Up” function.

Making Payments for SIPs

  • Due to recent changes, SIP payments are no longer auto-debited. You’ll need to make manual payments or wait for the e-mandate feature to be reinstated.
  • Pay for several SIPs at once by selecting the “Bulk Pay” option.

Example: Until e-mandates are available, you will have to manually approve the payment each month if you have set up a ₹2,000 monthly SIP in an index fund.

Step 5: Understanding Cutoff Times and NAV Allotment
The NAV at which your units are assigned is influenced by the date of your investment. Here’s what you need to know:

Cutoff Times for Mutual Funds

  • For most mutual funds, the cutoff time is 2 PM. Orders placed after 2 PM will be processed the next business day.
  • Liquid funds have an earlier cutoff time (12:30 PM or 12 PM for net banking).

NAV Allotment

  • Orders placed before to the cutoff period will be subject to the same day’s NAV.
  • If you place an order after the cutoff time, the next day’s NAV will apply.

For instance, if you invest ₹5,000 in a mutual fund at 3 PM, the units will be distributed according to the NAV for the following day.

Step 6: Managing Your Mutual Fund Portfolio
It’s simple to monitor and manage your investments using Zerodha Coin. Here’s how:

Viewing Your Investments

  • Visit the “Investments” page to view all of your holdings in mutual funds.
  • Click on a fund to view its performance, NAV, and other details.

Editing or Pausing SIPs

  • Your SIPs are always editable, pauseable, and deleteable.
  • This flexibility allows you to adjust your investments based on your financial goals.

Step 7: Troubleshooting Common Issues
While Zerodha Coin is user-friendly, you may encounter some issues. Here’s how to resolve them:

Pending Payments

  • If your SIP payments are pending, use the “Bulk Pay” option to clear them.
  • Ensure your bank account has sufficient funds.

Errors During Payment

  • If you encounter errors, try switching to a different payment method (e.g., UPI instead of net banking).
  • Contact Zerodha support if the issue persists.

Conclusion:

Start Your Mutual Fund Journey with Zerodha Coin
Zerodha Coin is a powerful tool for mutual fund investors, offering a seamless and cost-effective way to grow your wealth. Whether you prefer lump sum investments or SIPs, Coin has you covered. By following this guide, you’ll be well on your way to making smart investment decisions. So, what are you waiting for? Download Zerodha Coin and start investing today!

FAQs

Here’s a list of the top 20 queries regarding the Zerodha Coin Mutual Fund App along with accurate answers. These answers are based on Zerodha’s official documentation, FAQs, and reliable sources.

1. What is Zerodha Coin?

Answer: Zerodha Coin is a dedicated platform for investing in direct mutual funds. It allows users to invest in mutual funds with zero commission and lower expense ratios compared to regular funds.
Source: Zerodha Coin Official Page

2. Is Zerodha Coin free to use?

Answer: Yes, Zerodha Coin is completely free to use. There are no commission charges or platform fees for investing in mutual funds.
Source: Zerodha Coin FAQs

3. What is the minimum investment amount on Zerodha Coin?

Answer: The minimum investment amount for both lump sum and SIP is ₹500.
Source: Zerodha Coin FAQs

4. Can I invest in both direct and regular mutual funds on Zerodha Coin?

Answer: No, Zerodha Coin only allows investments in direct mutual funds, which have lower expense ratios compared to regular funds.
Source: Zerodha Coin Official Page

5. How do I log in to Zerodha Coin?

Answer: You can log in to Zerodha Coin using your existing Zerodha credentials (same as Kite). No separate account is required.
Source: Zerodha Coin Login Guide

6. Can I use the same funds for Zerodha Kite and Coin?

Answer: No, due to SEBI regulations, Zerodha Coin now uses a separate ledger for mutual fund transactions. You need to transfer funds specifically for Coin.
Source: Zerodha Coin FAQs

7. How do I set up an SIP on Zerodha Coin?

Answer:

  1. Go to the SIP section in the app.
  2. Select a mutual fund and click “Start SIP.”
  3. Set the SIP amount, frequency, and payment method.
  4. Approve the payment to activate the SIP.
    Source: Zerodha Coin SIP Guide

8. What is the cutoff time for mutual fund investments on Zerodha Coin?

Answer:

  • Equity and Debt Funds: 2 PM (orders after 2 PM are processed the next business day).
  • Liquid Funds: 12:30 PM (12 PM for net banking).
    Source: Zerodha Coin Cutoff Times

9. Can I pause or cancel an SIP on Zerodha Coin?

Answer: Yes, you can pause, edit, or cancel your SIP at any time through the app.
Source: Zerodha Coin SIP FAQs

10. How do I redeem my mutual fund investments on Zerodha Coin?

Answer:

  1. Go to the “Investments” tab.
  2. Select the mutual fund you want to redeem.
  3. Click “Redeem” and enter the amount or units.
  4. Confirm the redemption request.
    Source: Zerodha Coin Redemption Guide

11. Are there any lock-in periods for mutual funds on Zerodha Coin?

Answer: Lock-in periods depend on the type of mutual fund. For example:

  • ELSS Funds: 3 years.
  • Liquid Funds: No lock-in period.
    Source: Zerodha Coin FAQs

12. Can I switch between mutual funds on Zerodha Coin?

Answer: No, Zerodha Coin does not support direct switching between mutual funds. You need to redeem one fund and invest in another.
Source: Zerodha Coin FAQs

13. How do I track the performance of my mutual funds on Zerodha Coin?

Answer: Go to the “Investments” tab to view your portfolio. You can see the NAV, returns, and other details for each fund.
Source: Zerodha Coin Portfolio Guide

14. What payment methods are available on Zerodha Coin?

Answer: You can pay via UPI, net banking, or NEFT.
Source: Zerodha Coin Payment Guide

15. Can I invest in international mutual funds on Zerodha Coin?

Answer: No, Zerodha Coin currently supports only Indian mutual funds.
Source: Zerodha Coin FAQs

16. How do I update my bank account details on Zerodha Coin?

Answer:

  1. Log in to your Zerodha account on the Console.
  2. Go to “Profile” > “Bank Accounts.”
  3. Add or update your bank account details.
    Source: Zerodha Bank Account Update Guide

17. What is the difference between Zerodha Kite and Coin app?

Answer:

  • Kite: Used for stock trading, futures, and options.
  • Coin: Used for direct mutual fund investments.
    Source: Zerodha Coin vs Kite

18. Can I invest in ETFs on Zerodha Coin?

Answer: No, ETFs (Exchange-Traded Funds) are traded on the stock exchange and must be purchased through Zerodha Kite.
Source: Zerodha Coin FAQs

19. How do I contact Zerodha Coin support?

Answer: You can reach Zerodha support via:

  • Email: support@zerodha.com
  • Phone: 080-47192020
  • Live Chat: Available on the Zerodha website.
    Source: Zerodha Support

20. Is Zerodha Coin safe for mutual fund investments?

Answer: Yes, Zerodha Coin is SEBI-registered and uses secure encryption to protect user data. Your investments are held directly with the Asset Management Company (AMC), not Zerodha.
Source: Zerodha Coin Security

21. What is the minimum amount required to invest in mutual funds on Zerodha Coin?


The minimum investment amount is ₹500 for both lump sum and SIP investments.

22. Can I switch between mutual funds on Zerodha Coin?


Yes, you can redeem your existing investments and reinvest in another fund. However, switching directly between funds is not supported.

23. Are there any charges for using Zerodha Coin?


No, Zerodha Coin is completely free to use. There are no commission or platform fees.

24. How do I track the performance of my mutual funds?


You can view your portfolio and track performance in the “Investments” tab of the Coin app.

25. What happens if I miss an SIP payment?


If you miss an SIP payment, the order will remain pending until you manually clear it. Ensure timely payments to avoid disruptions in your investment plan.



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