If you want a low brokerage Demat account, Zerodha is the best option. They just charge for trading transactions thereby eliminating the investment brokerage fee. However, there are Zerodha AMC charges, charged for maintaining the account.
The Zerodha AMC charges or the annual maintenance charges are meant for keeping the account active. The charges of the AMC are deducted directly from the account holder’s trading account in each quarter.
For a detailed analysis of Zerodha AMC Charges, dive in!
Zerodha Annual Charges
Zerodha charges the annual maintenance once in every quarter i.e. every three months from the date of the account opening. In simple words, one-fourth of the total AMC must be paid every three months.
Initially, for the first 1 year, AMC charges are waved off, if you have a Zerodha Free Demat Account.
Moreover, the AMC varies as per the type of account one opts for. The following are the AMC rates for different DEMAT accounts at Zerodha.
It should be noted that in Zerodha, there is no complex procedure for charging maintenance fees. They charge it directly from the current balance of one’s trading account.
In fact, in such a scenario where they already have the client’s money, there’s no point in charging it separately. The mechanism is almost similar to that of Paytm.
Also Read: Zerodha Valuation
Zerodha AMC Charges Date
The date on which the annual maintenance charges shall be due depends on the date of Zerodha Demat account opening.
The Zerodha AMC charges is charged after an interval of every 3 months from the date when the Demat account is opened. Hence, it is referred to as a quarterly charge and is paid 4 times a year. A GST of 18% is added to the respective AMC amount (depending on the type of holder).
Zerodha AMC SIP
The Systematic Investment Plan abbreviated as SIP is a periodic investment. Zerodha SIP, however, does not follow the regular module.
Rather, all the orders are sent as a lump sum investment to the AMCs on the dates chosen by an individual. This ensures control and flexibility that too without any complex documentation.
Besides, Zerodha AMC charges for the SIP is accepted only in the form of monthly installments. The defined dates on which the SIP charges are being deducted are any one of 1st,5th, 10th and 15th of every month.
Zerodha currently provides AMC SIP on five mutual fund schemes:
- SBI small-cap mutual fund
- Reliance small-cap fund
- Mirae Emerging Bluechip fund
- ICICI Prudential Small Cap Fund
- DSP Small Cap Fund
The Bangalore based Zerodha is a great budget broker for stock and commodity trading. With a reasonable brokerage fee of 0.01% (irrespective of the number of shares), Zerodha is the best discount broker in the country.
Taking into consideration Zerodha AMC charges, it is a pretty good system of quarterly payments. This not only makes payments flexible but also eases the client’s burden.
Besides, the basic Zerodha AMC charges are worth INR 300 which makes Zerodha an ideal broker to opt for (particularly for the budding investors).
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