What are the charges applicable for investing in securities through Coin?
Investing in mutual funds through Coin by Zerodha is free. However, mutual fund transactions involve certain charges mandated by regulatory bodies or fund houses. These charges apply regardless of the platform used for investing. Below is an overview of these charges:
| Charges | Description | Rate | Applicability | Levied by |
| Stamp duty on allotment | A tax levied on the purchase of mutual fund units, applicable to transactions such as lump-sum investments, Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and dividend reinvestments. | 0.005% of the investment amount. | Deducted from the investment amount at the time of unit allotment. For example, investing ₹1,00,000 would incur a stamp duty of ₹5, resulting in an effective investment of ₹99,995. | Government of India |
| Securities Transaction Tax (STT) | A tax imposed on the sale of equity-oriented mutual fund units. | 0.001% of the redemption value. |
Applicable only to equity-oriented mutual funds.For example, redeeming units worth ₹1,00,000 would incur an STT of ₹1.
|
Government of India |
| Exit Load | A fee charged by the fund house when investors redeem (sell) their units before a specified period, intended to discourage premature withdrawals. | Varies by scheme; commonly around 1% if redeemed within one year. |
Specific exit load details are outlined in each scheme's offer document. For example, redeeming units worth ₹1,00,000 within the specified period with a 1% exit load would result in a charge of ₹1,000. |
Asset Management Companies (AMC) |
| Tax Deducted at Source (TDS) | A tax deducted on dividend income from mutual funds, applicable if the dividend exceeds a certain threshold. | 10% on dividend income exceeding ₹5,000 in a financial year. |
Applicable to dividend payouts; not applicable to growth options. Investors need to report this income and the TDS in their income tax returns. |
Government of India |
Did you know?
- There are no Depository Participant (DP) charges for investing through Coin.
- There are no additional Account Maintenance Charges (AMC) for using Coin since all the Coin investments are held in demat form.
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