Zerodha founder and CEO Nithin Kamath criticized rival platforms for their actions following Groww’s introduction of regular mutual funds through Groww Prime. Kamath highlighted that many platforms that launched direct mutual fund offerings around the time Zerodha introduced its Coin platform have either disappeared or changed their focus. He emphasized Zerodha’s commitment to providing direct mutual funds for free, contrasting with the shifting strategies of other competitors.
Bengaluru-based Groww recently expanded its offerings by including regular mutual funds on its subscription-based Groww Prime platform. Initially available to a limited user group, this product is now accessible to Groww’s two-crore customer base. Groww, which previously focused on direct mutual funds, now provides regular mutual funds as well, aiming to offer a broader investment selection to its users.
Zerodha’s pricing approach has remained consistent since pioneering the discount brokerage model in 2010. Kamath explained that their decision to charge a flat fee for all trade sizes was based on the principle of fairness and efficiency. Even after introducing Coin, Zerodha continued to prioritize direct mutual funds over commissions from regular plans, aligning with their ethos of transparency and cost-effectiveness.
Kamath encouraged investors to review their mutual fund holdings, particularly emphasizing the benefits of direct plans over regular ones. He assured Zerodha’s support in facilitating the transition from regular funds to direct plans for interested customers, underscoring the company’s dedication to empowering investors with informed choices and cost-effective solutions.
