Zerodha is set to bring mutual fund investing directly to its popular Kite trading app within the next few months, according to Neelesh Verma, who heads mutual funds at the company. Until now, Kite users could view mutual funds but were redirected to the separate Coin app to make investments. The upcoming integration will allow investors to manage more of their equity and mutual fund investments from a single platform, with Zerodha also planning to let customers import mutual fund holdings from other platforms into Kite. As reported by NDTV Profit, this move addresses a long-standing quirk in Zerodha's app ecosystem where investors can view mutual fund holdings on Kite but are currently redirected to Coin for purchases. "It will be a user-friendly experience because we do see investors who want everything on one app," Verma said, emphasizing the convenience factor for users. The integration aims to streamline the investing journey as Zerodha navigates a tightening race against industry rivals.
The integration strategy is driven by significant user adoption metrics across Zerodha's platforms. Kite has achieved more than 1 crore downloads and over 65 lakh active investors, making it the company's more widely used platform. In contrast, Coin has more than 50 lakh downloads. Historically, Zerodha has kept the two platforms separate: Kite for active investing and trading, and Coin for passive, long-term investments such as mutual funds, SIPs, NPS and fixed deposits. With over 65 lakh active investors on Kite, Zerodha hopes this move will simplify investing and attract more investors as competition with rivals like Groww heats up. Most fintech and trading apps offer all stock-market or investment-related products in one app and find Zerodha's dual-app strategy confusing, making this consolidation strategically important for user experience.
The move marks a significant shift from Zerodha's long-standing strategy of separating active investing on Kite from passive, long-term investing on Coin. However, the company says Coin will continue to remain its passive-focused platform for users who prefer that experience. As reported by NDTV Profit, Verma clarified that "It is not like we are removing the active and the passive bifurcation that we had, but what we are doing is bringing in an option to customers." This consolidation addresses a long-standing quirk in Zerodha's app ecosystem where investors can view mutual fund holdings on Kite but are currently redirected to Coin for purchases. The timeline for this integration has not been finalised, but the new feature will allow users to move their mutual fund investments from other platforms straight into Kite, further simplifying the investment process. Zerodha has said that most investors indulge in panic or impulse buying and selling often, and a segregation of long-term and short-term investments is a good way to maximise returns.
The integration could help Zerodha deepen its mutual fund business, which currently serves more than 3 million mutual fund investors and 5.6 million SIP accounts. As reported by NDTV Profit, the timing is notable as Zerodha continues expanding its fund business. The company's fund house recently launched the Zerodha Arbitrage Fund, an open-ended equity scheme designed to seek returns from price differences between cash and futures markets. The integration could also make mutual fund investing more accessible to Kite's large user base in the increasingly competitive mutual fund market, potentially attracting more investors as competition with rivals like Groww intensifies. "Bringing this under one roof could boost mutual fund investments for Kite," according to industry analysis. With increased competition between the Bengaluru-based rivals for mutual fund customers and popular SIP investors, offering mutual funds inside the more popular Kite app could give Zerodha a significant boost.
