What Brokerage does 5paisa Charge? How does 5paisa make money in mutual funds?

What Brokerage does 5paisa Charge? How does 5paisa make money in mutual funds?

 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.



    • Related Articles

    • How are Mutual Funds categorised?

      Mutual funds are categorised based on asset class, investment goals, structure, risk, and specialisation: · Asset Class: Includes Equity Funds (stocks), Debt Funds (bonds), Money Market Funds (low-risk securities), and Hybrid Funds (mix of stocks and ...

    • What are Direct Mutual Funds?

      Direct Mutual Funds allow investors to purchase mutual funds directly from the Asset Management Company (AMC), bypassing intermediaries like distributors. This direct approach reduces costs by eliminating commissions and fees. These funds are ...

    • How can I make Lumpsum Investment in Mutual Funds?

      To make Lumpsum investments, follow these steps: 1. Log in to your 5paisa account and navigate the mutual fund section. 2. Mobile App: Choose the MF scheme you prefer ? Go to Overview ? Tap on the One Time CTA button ? You'll land on the Invest ...

    • Why is there a charge of ₹10 levied while transferring money through net banking to the 5paisa trading account?

      Whenever you add funds to your 5paisa trading account using net banking, a ₹10 per transaction fee is applicable. It is a payment gateway charge that is levied every time you transfer money via net banking. 5paisa offers alternative payment methods ...

    • Do mutual funds invest only in stocks?

      Mutual funds invest in stocks, but certain types also invest in government and corporate bonds. Stocks are subject to the whims of the market and thus offer a higher return potential than bonds, but they also present more risk. A mutual fund's ...