To invest in mutual funds from Zerodha, you need to follow these steps:
- Open a Zerodha account: Firstly, you need to open a Demat and trading account with Zerodha. You can do this by visiting their website or contacting their customer service.
- Complete the KYC process: To invest in mutual funds, you have to complete the Know Your Customer (KYC) process. You can do this by submitting your PAN card, Aadhaar card, and other required documents.
- Log in to Zerodha account: Once your account is set up and KYC is completed, log in to your Zerodha account using the provided login credentials.
- Explore the mutual funds platform: Within your Zerodha account, navigate to the 'Coin' section. This is the mutual funds platform provided by Zerodha.
- Research and select mutual funds: Zerodha offers a wide range of mutual funds from various Asset Management Companies (AMCs). You can research different funds based on their past performance, expense ratio, risk profile, and investment objective. Once you find suitable funds, shortlist them for investment.
- Invest in mutual funds: After selecting the desired mutual funds, enter the investment amount you wish to put in each fund. You can either make a lump sum investment or set up a Systematic Investment Plan (SIP) where you can invest a fixed amount at regular intervals.
- Payment and confirmation: Proceed with the payment for the selected mutual funds. Zerodha provides different payment options, including net banking and Unified Payments Interface (UPI). Once the payment is successful, you will receive a confirmation of your investment.
- Monitor and manage your investments: You can track the performance of your mutual funds through your Zerodha account. You will receive regular updates and statements regarding your investments. If needed, you can also make changes or redeem your investments through the platform.
It is important to note that investing in mutual funds carries market risks, and it's advisable to do thorough research or consult a financial advisor before making any investment decisions.
What are the historical returns of mutual funds on Zerodha?
Zerodha is a popular online brokerage firm in India, and they provide various mutual fund options to their customers. The historical returns of mutual funds can vary widely depending on the specific fund, investment strategy, market conditions, and the time period analyzed. To get accurate and up-to-date information about the historical returns of mutual funds on Zerodha, it is best to visit their official website or consult with a financial professional.
Can I invest in mutual funds with Zerodha's mobile app?
Yes, you can invest in mutual funds with Zerodha's mobile app. Zerodha offers a platform called Coin, which allows users to invest in mutual funds directly through their app.
What are mutual funds?
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, or other assets. These funds are managed by professional fund managers who make investment decisions on behalf of the investors. Investors in mutual funds own shares in the fund and the value of each share is based on the net asset value (NAV) of the fund, which fluctuates based on the performance of the underlying securities. Mutual funds offer a way for individual investors to access diversified portfolios, professional management, and potentially higher returns, while spreading out the risks associated with individual investments.
How can I track the performance of my mutual fund investments on Zerodha?
To track the performance of your mutual fund investments on Zerodha, you can follow these steps:
- Log in to your Zerodha account.
- Go to the 'Console' tab and select 'My Funds'.
- Click on 'Mutual Funds'.
- Under 'Summary,' you can see the list of mutual funds you have invested in.
- Click on the desired mutual fund's name to view its detailed performance.
- Zerodha provides various details such as current value, investment amount, day's gain/loss, investment duration, and absolute returns for each mutual fund.
- You can also view the fund's performance over different time periods like 1 day, 1 month, 6 months, 1 year, etc.
- Further, Zerodha offers graphical representations of the mutual fund's historical performance, allowing you to analyze its trend and performance in a visually appealing manner.
- You can also download the detailed reports for your reference.
By regularly monitoring the performance of your mutual fund investments on Zerodha, you can make informed decisions regarding portfolio rebalancing or investment strategies.
Are there any tax implications for investing in mutual funds on Zerodha?
There can be tax implications for investing in mutual funds on Zerodha, just as with any other investment platform. The specific tax implications depend on various factors such as the type of mutual fund, your holding period, and the gains or losses made from the investment. Here are a few key tax considerations:
- Long-term Capital Gains (LTCG) Tax: If you hold equity mutual funds for more than one year, any gains above ₹1 lakh in a financial year will attract a LTCG tax rate of 10%. However, gains up to ₹1 lakh are currently exempt from taxation.
- Short-term Capital Gains (STCG) Tax: If you hold equity mutual funds for one year or less, any gains are considered short-term and are subject to STCG tax at a rate of 15%.
- Dividend Distribution Tax (DDT): Mutual funds may distribute dividends to investors, and these dividends are subject to DDT before being paid out. This tax is deducted at the mutual fund level, and investors receive the net amount after deducting DDT. However, note that DDT was abolished for equity-oriented mutual funds from April 1, 2020. Therefore, new dividend plans may be introduced, or mutual funds may opt for the growth option where dividends are not paid out.
- Securities Transaction Tax (STT): When you sell equity-oriented mutual funds, STT is applicable at a rate of 0.001% on the sale value.
It's important to consult with a tax professional or financial advisor to understand the specific tax implications based on your investment portfolio and financial situation. This answer is provided for informational purposes only and should not be considered as tax advice.