How to Invest in Mutual Funds Through Zerodha: A Beginner’s Guide

Investing in mutual funds through Zerodha is a seamless process made easy by its platform, Coin, which allows investors to buy direct mutual funds without commissions. Whether you’re a beginner or a seasoned investor, Zerodha provides a straightforward way to invest in both lump-sum amounts and via systematic investment plans (SIPs). Here’s a step-by-step guide on how to invest in mutual funds through Zerodha.

Step-by-Step Guide to Investing in Mutual Funds Through Zerodha

1. Open a Zerodha Account

  • If you don’t already have a Zerodha account, the first step is to open one. You’ll need a Demat account to hold your mutual funds in an electronic format. The process of account opening is paperless and can be completed within 15 minutes if you have your PAN card, Aadhaar card, and bank details handy​.

2. Log into Zerodha Coin

  • Once your account is set up, log into the Zerodha Coin platform, which is specifically designed for mutual fund investments​.

3. Explore Mutual Funds

  • On the Coin dashboard, click on ‘Explore’ to browse through a wide range of mutual funds. You can filter funds based on categories like equity, debt, or hybrid, and even view funds from different fund houses. There’s also an option to search for specific schemes using the search bar​.

4. Choose a Fund

  • After exploring the available options, select the mutual fund you wish to invest in. You can either opt for a lump sum investment or set up a SIP. If you opt for SIP, decide the frequency (monthly, quarterly, etc.) and the investment amount​.

5. Add Funds to Your Zerodha Account

  • You’ll need to transfer money to your Zerodha account to complete the investment. You can do this through Net Banking or UPI. Once the funds are added, the investment will be processed​.

6. Confirm the Investment

  • After entering the investment amount, review the details, and confirm the transaction. Your mutual fund units will be credited to your Demat account within 2-3 working days​.

7. Track Your Investments

  • You can track your mutual fund investments under the ‘Investments’ tab on Coin. The platform also allows you to monitor the performance of your investments, view your portfolio, and make additional investments as required​.

Why Choose Zerodha for Mutual Funds?

  • No Commissions: Since Zerodha offers direct mutual funds, you save on commissions that are typically charged in regular mutual funds​.
  • Demat Mode: All mutual funds are held in Demat form, making it easier to track alongside your equity investments​.
  • User-Friendly: Zerodha provides a simple, intuitive platform for managing your mutual fund portfolio.

how to invest in mutual funds through zerodha

FAQ

  1. What is the minimum investment amount for mutual funds on Zerodha?
    The minimum amount can range from ₹100 to ₹500, depending on the specific mutual fund​.
  2. Can I invest through SIP on Zerodha?
    Yes, you can set up SIPs on Zerodha Coin and invest a fixed amount at regular intervals​.
  3. How do I add money to my Zerodha account for mutual fund investments?
    You can add funds through Net Banking or UPI, with the option to set up automatic payments via e-Mandates​.
  4. How long does it take for mutual fund units to be credited to my account?
    Once you confirm your investment, the units are usually credited to your Demat account within 2-3 working days​.
  5. Is Zerodha free for mutual fund investments?
    Yes, Zerodha does not charge any fees for mutual fund investments made through Coin, but there may be small payment gateway charges depending on the method of fund transfer​.

By following these steps, you can easily start investing in mutual funds through Zerodha and work towards building a diversified portfolio suited to your financial goals.