Mutual Fund

Who is the broking firm who is providing online mutual funds transaction through demat.? What is the transaction cost for purchase of funds?

We refrain to answer on other threads. But since u were asking, we at Zerodha are about to launch MF in demat form. No transaction costs for buying/selling.

We refrain to answer on other threads. But since u were asking, we at Zerodha are about to launch MF in demat form. No transaction costs for buying/selling.

What do you mean by ' NO TRANSACTION COST ' ?

Does it mean no brokerage and associated other charges ? or merely no additional charges other than what is applicable to 'Delivery Based Equity Buy and Sell ' i.e. standard brokerage +Sebi /NSE Charges + STT + Servcie Tax + Stamp Charges + demat charges on sell side etc etc.

Presently, I buy through my other broker in folio and purchase is NAV based distributor plan plus some trailing commissions. Please also clarify whether we get NAV based on Direct Plan or Distributor Plan.

During market hours I have observed the price of MF units on exchange keeps fluctuating like equities I believe that is the price we pay per unit to buy and not on NAV at EOD. Am I right ?

@comm, no this won't be a direct purchase. A distributor is not allowed to do this.

@shekar, no brokerage/STT/any other charge. The convenience would be that along with everything in ur demat, u will also have mutual funds unit. We will also soon start pledging of MF, so u can pledge similar to stocks and use margin to trade on F&O.

I guess Finvasia is already providing MFSS services. There are two ways to buy MF/SIP

1. Online : where you can request your broker to buy MF and/or SIP at exchanges. The MF shall be directly credit in your Demat ac.
2. Offline : You need to fill the forms (with MF or broker). They shall send the certif at your home. Broker has to be AMFI member to provide MF services offline.

Brokers should not be charging any fees.

You can invest directly with MF too, this is the best way for long term as expenses are less by 0.5-1 % for Equity funds which makes big impact over 10-20 years.

But still, with broker MF you can put some part of your trading capital in say a decent liquid scheme and use it as margin. This should be better than using Liquid Bees which has low returns and transaction charges too.

@zerodha - can NOW users also use this ?