5Paisa provides brokerage-free Mutual Fund investments, meaning they don't charge commissions from customers or Asset Management Companies (AMCs). Instead, the majority of their revenue comes from derivatives trading. Free mutual fund services attract large traders and investors who eventually pay for stock and derivatives trading. Additionally, users can pledge Mutual Fund units or stocks and utilise the pledged amount for trading, earning 5Paisa brokerage fees. While AMCs charge an expense ratio for fund management, 5Paisa doesn't charge brokerage on mutual fund transactions.