You should go with a broker that provides direct mutual funds to invest in India to save on commission charges.
Regular mutual funds and Direct mutual funds are two versions of every mutual fund. Regular mutual funds can be bought through intermediary brokers who charge 1% to 1.5% commission. AMCs recover this commission through expense ratio.
You can buy direct mutual funds directly from the AMCs or the fund house, and no commission is charged. So, the expense ratio of a direct mutual fund is lower than regular mutual funds.
If you check one mutual fund scheme for both regular and direct versions, you’ll see a clear difference between the expense ratio of both versions.
For example, If you check the Kotak Flexicap mutual fund (or any other fund) in Zerodha (direct mutual funds) and Sharekhan (regular mutual funds), both have different NAVs and expense ratios for the same fund.
The difference between NAV and expense ratio is just because the mutual fund house has to pay some commission to the intermediaries in the regular plan.
If you invest through a broker who charges a commission on your investment, then you are investing less money in the market. And if you are investing directly in different mutual funds from their respective fund house websites, you have to keep a record of each investment. A hectic work to do.
So the best way to invest in multiple mutual funds is in direct mutual funds through a platform that doesn’t charge you any commission. It could be a broker like Zerodha or an investment platform like INDMoney or ETMoney.
Most discount brokers like Zerodha, Upstox, and Groww offer direct mutual funds investment without any commission making investment cheaper and more convenient.
Here the question is what’s the point of investing through platforms INDMoney or ETMoney? You can also invest in US stocks from India through INDmoney app.
Mutual funds investment doesn’t require any Demat account. Stock brokers like Zerodha open a demat+trading account for mutual funds as well. If you do stock investment or trading then you can go with a stockbroker to track all your investment in one place. Otherwise, you can also invest through investment advisory platforms like ETMoney to avoid annual maintenance charges to brokers.
If you already have a Demat account, you can use that one also for mutual funds investment without going for another separate account. But make sure your broker offers direct mutual funds investment.
I have tried to answer questions that come to every beginner investor’s mind. Now you can go through our list of the 7 best brokers for mutual funds investment in India, for further clarity.
Best Broker For Mutual Funds In India
#1. Zerodha Coin
Zerodha has a separate platform called “Coin” for mutual funds investment. Zerodha coins allow you to invest in 3000 plus mutual funds directly. You can invest in 42 AMCs mutual fund schemes with Zerodha Coin.
Zerodha is the best broker if you are looking for both mutual fund and stock investment purposes. You can invest in stocks, currency and commodities at discounted Rs. 20 brokerages. You can also invest in government securities like SGBs, treasury bills, and corporate bonds through Coin.
Zerodha is the number one broker in India with a more than 1 crore client base. Zerodha has a separate platform for stock trading which is called Kite.
You can also install the Zerodha Varsity app to learn value investing in an easy-to-understand language. You don’t even require a Zerodha Demat account to use the Varsity app.
Major features of Zerodha
Here are the details of major features and Zerodha account charges
| No. of mutual funds available | More than 3,000 |
| Investment scheme | Direct |
| Account opening fee | Rs. 200 (for equity) |
| Annual maintenance fee | Rs. 300 annually |
| Brokerage | Equity delivery – Free Options trading – Flat Rs. 20 per order Other segments – 0.03% to Rs. 20 per order (whichever is lower) |
#2. Groww
Groww has a huge listing of 5000+ Direct Mutual Funds that covers 48 fund houses and their plans.
Groww app has a “Smart save” feature which allows you to invest your idle money in liquid funds and you can instantly withdraw your money whenever you want. The Smart save feature helps you earn additional interest on your idle money in the bank.
Groww web platform and app both are very easy to use. You can also invest in Indian stocks, US stocks, bonds, and SGB (Gold bonds) with the Groww account.
Major features of Groww
Here are the details of major features and Groww account charges
| No. of mutual funds available | above 5,000 |
| Investment scheme | Direct |
| Account opening fee | Zero |
| Annual maintenance fee | Zero |
| Brokerage | Equity brokerage – 0.05% to Rs. 20 per order (whichever is lower) F&O brokerage – Flat Rs. 20 per order |
You can check out a detailed comparison of Upstox vs Groww.
#3. 5paisa
5paisa provides the highest number of mutual fund plans to invest in which are 9000+ mutual funds available. 5paisa also offers direct mutual fund investment which is commission free.
You can invest in 43 AMCs in six categories like top funds, and high growth with 5paisa.
5paisa is also the first discount broker to offer portfolio advisory services for you at an additional cost. You can read all 5 paisa plans with their charges.
Major features of 5paisa
| No. of mutual funds available | above 9,000 |
| Investment scheme | Direct |
| Account opening fee | Zero |
| Annual maintenance fee | Rs. 25 per month |
| Brokerage (Regular plan) | Flat Rs. 20 per order |
#4. Upstox
You can invest in more than 2500 direct mutual funds offered by 35 AMCs without paying any commission. Upstox has a robust and user-friendly platform.
Upstox also allows you to invest in stocks, currency, and commodities at flat Rs. 20 brokerage.
If you are a newcomer, you can learn the basics of investing from the Upstox Youtube channel that brings top financial gurus like Pranjal Kamra.
Major features of Upstox
Here are the details of major features and Upstox account charges
| No. of mutual funds available | More than 2,500 |
| Investment scheme | Direct |
| Account opening fee | Zero |
| Annual maintenance fee | Zero |
| Brokerage | Equity delivery – 2.5% to Rs. 20 per order (whichever is lower) Options trading – Flat Rs. 20 per order Other segments – 0.05% to Rs. 20 per order (whichever is lower) |
#5. Angel Bee
Angel Bee is a part of Angel Broking dedicated to mutual funds investment. Angel Bee is a regular mutual fund platform where you have to pay some commission when you invest in mutual funds.
Angel Bee is ideal for you if you don’t have any knowledge about which mutual fund to pick for investment. Angel Bee has a solid ARQ engine which is an AI-based Robo-advisory platform that can guide you in picking the right mutual funds (or mix-match different mutual funds) based on your investment goals.
You also get timely recommendations to match your investment criteria.
Major features of Angel Bee
| No. of mutual funds available | N.A. |
| Investment scheme | Regular |
| Account opening fee | Zero |
| Annual maintenance fee | Zero |
| Brokerage (Angel iTrade Prime Plan) | Equity delivery – Free Other segments – Flat Rs. 20 per order |
Check out – Angle one online trading platform review
#6. Paytm Money
Paytm Money is another popular broker in the list with a massive 16 lakh investor base. Paytm offers direct mutual funds from 37 fund houses for investment.
You can also choose funds from 7 categories for easy selection. Funds categories are like Best returns, top picks, and super saver.
Paytm charges Rs. 30 monthly platform fee for stock trading but it has mentioned that mutual funds investment is completely free. So you don’t have to pay any extra charges if you only invest in mutual funds.
Major features of Paytm Money
Here are the details of major features and Paytm money account charges
| No. of mutual funds available | N.A. |
| Investment scheme | Direct |
| Account opening fee | Zero |
| Annual maintenance fee | Zero |
| Brokerage | Equity delivery – 2.5% to Rs. 15 per order (whichever is lower) Options trading – Flat Rs. 15 per order Other segments – 0.05% to Rs. 15 per order (whichever is lower) |
#7. Motilal Oswal
Motilal Oswal is another full-service broker that offers regular fund investment. You can enjoy their advisory services and AI-based customized portfolios if you do not have sufficient time and expertise to pick the right funds.
Motilal also has a unique feature of a SIP booster that allows you to increase your SIP amount and investing frequency with a few clicks. SIP booster increases your current SIP amount rather than creating multiple SIPs in the same scheme.
Motilal Oswal’s MO Investor app is also robust, streamlined and snappy, making it an easy affair for investors.
Major features of Motilal Oswal
| No. of mutual funds available | N.A. |
| Investment scheme | Regular |
| Account opening fee | Zero |
| Annual maintenance fee | Rs. 300 to Rs. 900 (depending upon the plan) |
| Brokerage | Equity delivery – 0.20% per order Options trading – Flat Rs. 20 per lot Other segments – 0.02%per order |
Verdict
You can go with Groww because it has a huge list of mutual funds available, a user-friendly app and you don’t have to pay any charges.
You can start with Angel Bee if your mutual fund research is not strong, because Angel Bee has an AI-based advisory engine that can curate a basket of mutual funds for you based on your investment goals.
You can also open an account with 5paisa, as they have the highest number of mutual funds listed with them, but their app sometimes has login issues.
