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Comment by nikant | Hacker News Reader

How is this different than the already available solutions in the market like Scripbox?

Hey Nikant! When you invest Rs.10000 with Scripbox, they take 0.5-1.5% commission on that investment every year as long as 10000 remains invested and to whatever that amount grows to. So you are paying compounding commissions. Most Indians aren't aware of this.

We don't take these hidden commissions. We charge a one time fee.

Also Scripbox offers a limited set of funds while we offer products from all fund houses. So even an expert user would be able to use us and wouldn't be limited by an algorithm.

A point to be noted here is: Scripbox keeps getting that commission even after you have left Scripbox and stopped using it.

Same with FundsIndia etc. I would say, avoid any MF that is not direct. the long term hidden cost is staggering.

@Nikhil Congrts and just a feedback: I would have been very much interested if you had a monthly fee plan like Zerodha Coin and also offered advisory and analytics like Invezta, ORO etc. They all offer direct plans.

Do take a look at the charges section in our app. We have something out there that might work for you! :)

Also We focussed on building an easy to use app with seamless transaction platform that supports all fund houses first. The cake is in place. We will be adding a lot more over this.

Thank you for taking time out for all the detailed feedback!

Tried registering. Not sure I am registered or not yet. Was entering correct OTP and I remained on same screen w/o any measage or feedback. Whenever changing between apps the filled registration form will be cleaned.

And password length only 12 max? That's serious.

Looks like the app is still in beta or alpha. Anyway good luck. Not the time to put my money there yet. It's just a feedback and I am talking about iOS app.

Thanks! We'll look into it. Try our Android app if you can. That is up to date. iOS app will be up to speed soon.

I thought that the scripbox gets the commision from the Mutual fund company and not from the customer's investment. So how is that the customer's loss. https://scripbox.com/help/if-i-am-not-charged-any-fees-how-d...

True. But commissions are counted in the expenses towards the fund. So basically the NAV of the fund is nothing but the income of the fund minus the expenses. So more the expenses, less the NAV, less the return to the investor. In the end investor/user is paying for those commissions.

> they take 0.5-1.5% commission on that investment every year as long as 10000 remains invested and to whatever that amount grows to. So you are paying compounding commissions. Most Indians aren't aware of this.

This is a massive claim. Any source?

https://scripbox.com/pages/disclosures

http://economictimes.indiatimes.com/mf/analysis/direct-plans...

First link does not mention anything about scripbox taking commissions from the consumers.

Second link does not mention scripbox at all!

Basically there are two plans in Mutual Funds. Direct and Regular. Both have the same securities, manager, structure etc. Only difference is that Fund houses pay commissions to agents on sale of regular plans, while there are no commission s on Direct plans. These commissions are counted as expenses towards the funds. The more the expenses the less the return. And these expenses are compounding hence the loss of return is also compounding. Scripbox provides only regular plans where they take commissions(Commission rates mentioned in the link). So while nothing is going from investor's pocket, the investor is taking a sizeable hit in their returns!

How do you differentiate between the two plans? Look for the word 'Direct' in direct plans of mutual funds.

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