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What are the advantages of using Coin?

Following are the advantages of investing using the Coin app:

  1. Investing in direct funds on Coin is commission-free. Direct Plans of AMCs do not charge commission expenses. Regular plans pay commissions to the broker or distributors. This commission is added to the expense ratio of the scheme. Regular plans have a higher expense ratio than Direct plans, which can amount to as much as 1% of the AUM (the value of holdings) as a commission from Mutual Funds annually. Brokers and distributors generally take these commissions as a percentage of the AUM directly from the AMC or Fund house selected under a Regular plan, lowering returns by the percentage taken as commission. To learn more about direct mutual funds, see What are Direct Mutual Funds?
  2. The step-up SIP feature allows for an automatic increase in SIP amounts by a predefined percentage. In effect, regular plan investments yield lower returns compared to Direct Plans due to these commission expenses. To learn more about set-up SIP, see What is step-up SIP, and how can it be set on Coin web?
  3. Easy Systematic Investment Plans (SIP) can be started, paused, or stopped as needed. SIP values can be increased or decreased at will.
  4. Net Asset Value (NAV) order tracking and a choice of over 41 Asset Management Companies (AMCs) and 2200 funds collectively are available. Orders to purchase or redeem funds based on NAV can be placed, similar to stocks.
  5. Mutual funds in an electronic demat format provide a single portfolio view of all stocks and mutual funds in one place. They are easy to pledge and take a loan against in case of emergency.
  6. A single consolidated statement includes P&L, visualizations, and more. It serves as a convenient reference for claiming tax deductions for ELSS Scheme as per Section 80C of the Income Tax Act, 1961.
  7. MF or stocks in DEMAT format are much easier to claim by dependents (nominees of DEMAT) in case of death. Direct plans with multiple AMC’s (Fund houses) would otherwise mean multiple folios, which would be difficult to aggregate and claim.
  8. Sectors and companies in which the fund house invests can be viewed, and mutual funds can be compared.