New Delhi, July 10 -- Zerodha co-founder Nithin Kamath has defended his organisation's long-standing preference for 'direct mutual funds', saying that investors should understand the difference between 'direct' and 'regular' mutual funds and should verify how they are investing. He highlighted that very few investors understand the difference between the two.

In a post on X on 9 July, Kamath discussed the principles behind Zerodha's pricing strategy and why the organisation opted to offer only 'direct mutual funds' through its Coin platform.

"When we started the discount brokerage (flat fee per trade) model in India in 2010, we decided to charge the same fee regardless of trade size," Kamath wrote. Explaining the rationale, he added, "T...