Best broker for mutual funds in India
Mutual fund investing in India is available through two distinct channels: the regular plan channel, which involves a SEBI-registered distributor (bank, broker, independent financial adviser) who earns a trail commission from the fund house; and the direct plan channel, in which the investor transacts directly with the fund house or through a direct-plan-only platform, with no distributor commission and consequently a lower expense ratio.
The “best broker for mutual funds” question has two separate answers depending on which channel is considered:
- For direct plan mutual funds, the relevant comparison is among platforms that offer direct plans (including stockbroker sub-platforms, RTA portals, and SEBI-registered investment advisers).
- For regular plan mutual funds, investors deal with a distributor, and the comparative dimension is advisory quality and convenience rather than cost alone.
This article focuses primarily on the direct plan channel, where cost differences are objective and quantifiable. Data reflects May 2026.
Direct vs regular plans: the core cost dimension
SEBI mandated the separation of mutual fund plans into direct and regular variants in 2013. The expense ratio difference between regular and direct plans typically ranges from 0.40 to 1.50 percentage points per year for actively managed equity funds, and 0.05 to 0.40 percentage points for index and debt funds.
| Fund category | Typical regular plan TER | Typical direct plan TER | Difference |
|---|---|---|---|
| Active large-cap equity | 1.50-1.80% | 0.80-1.10% | ~0.70% |
| Active mid-cap equity | 1.70-2.00% | 0.90-1.20% | ~0.80% |
| Active ELSS (tax saving) | 1.50-1.80% | 0.80-1.10% | ~0.70% |
| Nifty 50 index fund | 0.15-0.50% | 0.05-0.15% | ~0.10-0.30% |
| Liquid fund | 0.25-0.40% | 0.08-0.15% | ~0.15-0.20% |
TER = Total Expense Ratio, disclosed by AMFI and fund houses daily.
On a Rs 10,000/month SIP over 20 years at a gross fund CAGR of 12 per cent:
- Regular plan (TER difference = 0.70%): terminal corpus approximately Rs 93 lakh
- Direct plan (TER difference = 0%): terminal corpus approximately Rs 99 lakh
- Difference attributable to the TER gap: approximately Rs 6 lakh over 20 years
This arithmetic implies that investors who use direct plans and do not require advisory services receive materially better long-run outcomes solely by avoiding the distributor commission embedded in the regular plan expense ratio.
Platforms for direct mutual fund investing
Groww
Groww is the largest direct mutual fund platform in India by registered users as of 2025. Mutual fund investing is Groww’s core product, available at no additional charge as part of its stockbroking account. Users can invest in direct plans from all AMFI-registered fund houses, set up SIPs, perform switches, and redeem within the app. The fund discovery experience – filtering by category, fund house, rating, and past returns – is well-designed.
Groww does not charge a platform fee for direct mutual fund investing. It earns revenue from equity brokerage transactions. There is no AMC for mutual fund holdings.
Zerodha Coin
Zerodha’s direct mutual fund platform, Coin (coin.zerodha.com and within the Kite app), offers direct plans from all major fund houses. After the first year, Coin charges Rs 50 per month for users with any mutual fund holding. This fee applies regardless of the value of holdings; an investor with Rs 5,000 in a mutual fund pays the same Rs 50/month as an investor with Rs 50 lakh.
The Rs 50/month (Rs 600/year) fee is a material cost disadvantage for small SIP investors compared to zero-fee platforms. For investors with large existing equity portfolios on Zerodha who also invest in mutual funds, the convenience of a single platform may justify the fee.
Upstox
Upstox introduced direct mutual fund investing at no additional charge. The interface within Upstox Pro covers all fund houses, SIP setup, and redemption. No separate mutual fund fee is levied.
Dhan
Dhan offers direct mutual fund investing within the Dhan app at no additional charge, integrated with the equity trading interface.
Fyers
Fyers offers direct mutual fund investing within the Fyers platform at no additional charge.
5paisa
5paisa offers direct mutual fund investing; terms vary by plan. The default offering is direct plans.
Paytm Money
Paytm Money was launched primarily as a direct mutual fund platform and continues to offer direct plans at no additional charge. The mutual fund interface is among the most mature in the discount broker space, reflecting its longer history as an MF-first platform.
MFU (MF Utilities)
MF Utilities India (MFU) is a shared financial transaction platform built by the Association of Mutual Funds in India (AMFI) and fund houses. It allows direct mutual fund transactions across all participating fund houses through a single Common Account Number (CAN). MFU charges no platform fee. The interface is functional but less consumer-friendly than Groww or Paytm Money; it is more commonly used by DIY investors with some experience of mutual funds.
AMC direct portals
Every fund house maintains its own direct-plan portal (e.g., zerodhafundhouse.com, hdfcfund.com, sbi-mf.com). Investors who invest in a limited number of fund houses can maintain direct plans through each fund’s own portal without any intermediary. This eliminates all platform fees and is the purest direct-plan route. The operational complexity increases with the number of fund houses (separate login, separate mandate, separate statement for each).
CAMS and KFin portals
CAMS (Computer Age Management Services) and KFin Technologies are India’s two Registrar and Transfer Agents (RTAs) for mutual funds. Each maintains a portal (mycams.com and kfintech.com) that allows direct plan transactions and SIP management for all fund houses serviced by that RTA. This covers most major fund houses and is a free route to direct plans. The interface is utilitarian rather than discovery-oriented.
Cost comparison across platforms
| Platform | Platform fee for direct MF | Fund universe | SIP support | App usability |
|---|---|---|---|---|
| Groww | Zero | All AMFI funds | Yes | High |
| Upstox | Zero | All AMFI funds | Yes | High |
| Dhan | Zero | All AMFI funds | Yes | Good |
| Fyers | Zero | All AMFI funds | Yes | Good |
| Paytm Money | Zero | All AMFI funds | Yes | Good |
| 5paisa | Zero (plan-dependent) | All AMFI funds | Yes | Good |
| Zerodha Coin | Rs 50/month (after yr 1) | All AMFI funds | Yes | Good |
| MFU | Zero | All AMFI (participating) | Yes | Low-moderate |
| CAMS portal | Zero | CAMS-serviced funds | Yes | Low-moderate |
| KFin portal | Zero | KFin-serviced funds | Yes | Low-moderate |
| AMC direct portal | Zero | Single fund house | Yes | Variable |
Key features for SIP investors
SIP management: all major platforms support SIP creation, modification, and pause/cancellation via UPI NACH mandate. The mandate is registered through the investor’s UPI app (once) and debited on SIP dates thereafter. Pausing or modifying a SIP mid-mandate requires updating the mandate at most platforms.
Consolidated portfolio view: platforms that show both equity and mutual fund holdings together (Groww, Upstox, Zerodha) allow investors to see their total investable assets in a single view. MFU and RTA portals show only mutual funds.
Tax statements: all platforms generate capital gain statements for ITR filing. The consolidated account statement (CAS) generated by CAMS and KFin is the authoritative document for mutual fund holdings across all fund houses.
ELSS (tax saving) SIPs: Equity Linked Savings Schemes with a three-year lock-in are available on all platforms. The lock-in applies per instalment; each SIP instalment is independently locked for three years.
Regulatory framework
Direct mutual fund platforms that also hold SEBI stockbroker registration (Groww, Zerodha, Upstox, etc.) are dual-regulated: as stockbrokers by SEBI and as AMFI-registered distributors (or sub-RTA agents) for mutual funds. Platforms that exclusively distribute mutual funds may hold an AMFI registration without a stockbroker licence. MFU is a shared platform jointly owned by fund houses and operates as an industry utility.
All direct plan transactions are held by the respective fund house’s registrar (CAMS or KFin) and are not custodied by the broker platform. This means broker platform failure does not affect mutual fund holdings; the underlying fund units are recorded by the RTA.
Selecting a platform
For investors whose primary goal is cost-minimised direct mutual fund SIPs without equity trading:
- Groww, Upstox, Paytm Money, or Dhan offer zero-cost access to direct plans with good app experiences.
- MFU or CAMS/KFin portals are zero-cost alternatives with less consumer-friendly interfaces.
- AMC direct portals are zero-cost for investors concentrating in one or two fund houses.
For investors who also want equity trading and direct MFs in one account:
- Groww and Upstox offer both at zero platform fee.
- Zerodha offers both but charges Rs 50/month for Coin after year one; this is offset by Kite’s superior equity trading features for active investors.
- Dhan and Fyers offer both at zero platform fee but have smaller MF user communities.
For investors who require advisory alongside investing:
- SEBI-registered investment advisers (RIAs) who charge a fee and provide direct plan investing are legally the cleanest structure; they may access direct plans through MFU or broker APIs.
See also
- Zerodha
- Groww
- Upstox
- Zerodha vs Groww
- Zerodha vs Upstox
- Best broker for IPO in India
- Discount brokers in India
- Full-service vs discount broker
- Indian retail brokers comparison
- KFin Technologies
- SEBI
References
- SEBI circular on direct plans for mutual funds (December 2012). sebi.gov.in.
- AMFI TER data, monthly disclosure. amfiindia.com (accessed May 2026).
- MF Utilities India platform overview. mfuindia.com (accessed May 2026).
- CAMS myCAMS portal. mycams.com (accessed May 2026).
- KFin Technologies investor portal. kfintech.com (accessed May 2026).
- Zerodha Coin pricing. coin.zerodha.com (accessed May 2026).
- Groww mutual fund section. groww.in (accessed May 2026).
- SEBI (Mutual Funds) Regulations, 1996 (as amended). sebi.gov.in.