Zerodha, the Bengaluru-based stockbroking platform is aiming to enhance its long-term wealth management strategy by exploring deeper integration and collaboration between its trading and mutual fund distribution divisions. This is according to a report by the Economic Times.
Kite and Coin are the different applications that Zerodha currently has for trading and mutual transactions.
Neelesh Verma, product head of mutual funds, at Zerodha, said Coin is a direct mutual fund distribution platform which rivals Groww, ET Money, and Paytm Money.
Kite, on the other hand, he said, is an active trade application whereas Coin is more of a passive investment option.
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Verma stated that the idea behind Coin is to let investors put their funds for the long term and grow their wealth. He said that Coin is seen as a long-term wealth management tool which reportedly has the National Pension Scheme on its website and is hoping to bring it to other platforms as well.
Verma said that the integration of the two business units can help Zerodha channelise a large section of users into Coin.
Kite currently has 12-13 million users, whereas Coin has 2 million users.
Coin reportedly processes around 5 million orders a month with around 5,500 crore worth of investments flowing through a monthly basis, as per ET.
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Zerodha has shown tremendous growth over the years. It currently has around 2 million active mutual fund clients, compared to around 1.2 million in August 2023. It is the second-largest stockbroking platform with 7.7 million active clients as per ET.
The development comes at a time when fintech start-ups are looking to strengthen their long-term wealth management products to encourage customers to save instead of betting on high-frequency trading
It is reported that capital markets regulator SEBI is also tightening its guidelines for futures and options, to prevent people from eroding their wealth in trying to achieve unrealistic gains in the market.
