Do you want to invest in the stock market? Do you want to take a step towards wealth creation via investment in SIPs or mutual funds? If your answer to the above two questions is yes, you have reached the right spot. In this blog post, I will walk you through the step-by-step process of using the Groww App for investment in mutual funds and shares. This is going to be a detailed guide post, so sit back and relax, and take a cup of hot coffee and chips to enjoy reading this blog post.
Before moving ahead, here’s a highlight of the blog post.
What is the Groww app?
How does the Groww app work?
Is the Groww app safe in India?
How Do I Use the Groww App for Mutual Fund Investment?
How to Use the Groww App for Share Investment?
What is the Groww app?
Groww, established in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, is an online investment platform based in Bengaluru, India. This platform enables users to invest in various financial products, such as mutual funds and stocks. The Groww app stands out for its user-friendly interface, and it does not charge commission or brokerage fees for mutual fund investments.
In addition to facilitating investment transactions, the Groww app offers a plethora of tools and resources to assist users in making well-informed investment decisions. These resources include detailed fund performance data, expert insights, and investment recommendations. With over 1 crore users, Groww has gained popularity as a go-to investment app in India. The platform has established partnerships with more than 35 prominent asset management companies.
Groww’s success is underscored by numerous accolades, including the Best Investment App at the India Digital Awards 2019 and the Best Investment App at the India FinTech Awards 2020.
How does the Groww app work?
Trading in the stock market or investing in mutual funds is not free. When you invest in the stock market, it is surely not for free. You have to pay a small commission to the broker for the actual transaction. This commission depends on your volume of trade.
For example, if the volume of your trade is more than you need to pay, you need to pay may brokerage-free, and vice versa. Groww App charges a flat fee, which reduces the costs. That’s the reason why they are disruptors in the brokerage industry. They believe in charging zero brokerage, thus increasing the savings amount with customers. But this does not mean the Groww app does not charge any money or is not profitable.
So, how profitable is the Groww app?
Unlike other brokerage firms in India, Groww App is profitable because it does not have too many operation costs and branches in India. This reduces their cost of assets and significantly increases their profit. Also, they don’t offer any advisory tips or services because of conflicts of interest and to cut costs.
Moreover, the Groww App also keeps overhead costs low by leveraging the latest technology and expertise.
How do I create an account on the Groww app?
Now here comes the main part of this blog post, which is how to use the Groww app for your mutual fund investment in India. So, this is going to be a detailed walk-through guide in pictorial format. Make sure that you follow these steps in order to invest in mutual funds through the Groww app.
Download the Groww app from the Play Store.
First things first, you need to download the Groww app from the Play Store if you are using an Android phone. If you are using an iPhone, then you can use the Apple App Store and download the Groww App.
After downloading the Groww app from the Play Store or App Store, you need to register your cell phone in the Groww app. Make sure you register on the app via a cell phone that is connected to your Aadhar Card, PAN card, and bank account as well. This will help you get the OTP on the same cell number with easy approval.
Now click on the send OTP button to get one top password on your cell phone.
The Groww App will automatically verify the OTP that you get on the cell, and then you can click on the Verify button below.
After the verification, you need to enter your PAN card details and Addhar details as well, if required.
After entering your Pan Card details, your name will be picked automatically by the app, and then you can click on the Create Account button below. For example, my name is Nike, and it will ask you to confirm your name. You can confirm it and hop on to the next step.
In the next step, you need to select your gender. From now on, the main steps to creating your account on the Groww app will start. Make sure that you fill in every detail carefully in this step.
In the next step, you need to select your material status. Select married if you are married, and single if you are unmarried.
Now select your occupation from the range of options available to you. If you are working in a private job, then select the private sector, or you can opt for any other option depending on your work profile and the industry in which you are working.
In the next step, you need to select your annual income. In this step of creating an account on the Groww App, most people get confused. The Groww app is not asking for monthly income as such. You need to select your annual income, which is how much total money you make in a year.
In the next step, the Groww app will ask for your trading experience. If you are a beginner, then you can select 0–1 years. If you are a professional trader or have good knowledge about the stock market and trading, then you can select 5+ years.
The moment you click next, the Groww app will take you to another important step, which is to complete your KYC.
How do I complete KYC on the Groww app?
The first step to completing the KYC on the Groww app is to fill in your mother’s and father’s names and click next. In this step, make sure to fill in your partner’s name as mentioned in their Aadhar word-for-word. Don’t make any spelling or typographical errors.
Now you need to verify your bank account and connect it with the GrowW app. Groww App might charge Rs 1 for this process. Then click on Send Rs 1 to verify the bank. When you do this, your bank will be verified automatically.
Now you can proceed with KYC.
After proceeding with KYC, you will be directed to the Digi Locker page, where you will need to authenticate your Aadhar card. Digi Locker is a government website where you can upload your documents safely.
After clicking on authenticate your Aadhar, you will need to enter your Aadhar card number, complete the captcha, and click on next.
Now you need to enter the OTP on which your Aadhar card is registered. That’s why I told you to enter the same number in the first step, which is also mentioned in the Aadhard and Pan cards.
In the next step, you need to take your selfie and submit it. Make sure that your photo appears clean and decent. Your face should appear clearly.
Now, you need to verify your digital signature.
You can either type your name or signature on the screen. I would recommend typing the name, as it will be easy to type for a digital signature.
Next, you need to add your nominee. You can either add your nominee or proceed to the next step. I would personally recommend you add the nominee, no matter for what purpose you are using the Groww app.
A nominee is important because if anything happens to you in the future, then your invested amount or money will be given to the nominee.
You click on Proceed to Aadhar eSign and check all the details that you have submitted to the Groww App. Take your time and go through each and every detail carefully.
In the next step, you need to again verify the OTP sent to your registered Aadhar card.
After submitting your OTP, your documents will be signed successfully, and your account will be opened with the Groww App in 2–3 days.
Now your KYC is also completed successfully on the Groww app, and you will receive a confirmation message in 3–4 days or less.
How to Use the Groww App for Mutual Fund Investment
Now that you understand how to register on the Groww app and create your account, let us now understand how to invest in mutual funds or start your SIP on the Groww app. Groww App is currently the number one mutual fund online application in India, with more than 4 million customers, and I am personally using Groww App for my mutual fund investment.
So here’s how you can start your SIP or invest in a mutual fund via the Groww App.
1. First things first, you need to log-in to your Groww account. If you are using Groww App, you can log-in by entering your password PIN; if you are using a web application, then you can log-in via Gmail, followed by your password PIN.
2. After logging in to your Groww account, you’ll see a wonderful dashboard.
You can see an overview of stocks, shares, the NIFTI index, SENSEX, Bank Nifty, and all. You need to head over to the mutual funds’ tab on the right side of the stocks tab on the left side.
3. In the mutual funds section, you will get a complete overview of all the mutual funds, their returns, top-performing funds, and much more.
You can find mutual funds based on high return, low return, tax savings funds, lage cap, small cap, mid-cap, and a lot more. There is also a screen option that will allow you to find hybrid mutual funds, debt mutual funds, bonds, and equity-based mutual funds.
4. Once you have decided which fund to invest in, you can click on that fund and start your SIP. In this case, I have selected the ICICI fund.
You can get a complete overview of this fund, including its past performance, your expected returns, the fund manager, the investment portfolio of the funds, their holdings, and a lot more.
You can also get a complete holding analysis of the fund and know in which sectors they will be investing your money and in which companies.
You can also get to know how much the minimum amount required to start your SIP is in this fund. If you scroll a bit down, then you can also compare the other funds in similar categories and check for their returns as well.
5. Once you have decided on your mutual fund, you can start the SIP, which involves investing a certain amount monthly. Some mutual funds also allow you to make one-time investments and take the retruns at the end of the maturity period.
You can select the date of your SIP and click on the Start SIP button.
6. After clicking on the start SIP button, you will receive a one-time password for your email or registered mobile number.
After entering the OTP, you might get an internal server error sometime. So, you can head over to your cart shown above on the right side and make the payment.
7. For making the payment, you can either use UPI, directly debit from your bank, or add funds to your Groww App wallet and make the payment.
You need to click on Proceed to Pay and enter the OTP amount to make the final payment.
8. Once you have made the payment, you will get the order confirmation email from Groww, which looks like this:
This is only the order confirmation receipt.
In the next email, you will get the order process receipt, which looks like this:
After one or two days, you’ll be getting investment confirmation, and units will be allocated to you.
Congratulations!! You have successfully started your SIP on the Groww app. Happy Investing.
There are a few important things to keep in mind while starting your SIP or mutual fund on the Groww app.
A. Once you have started your SIP on the Groww App, make sure to pay the installment on time and never miss it.
B. If you are not good at remembering the dates of your next installment, then you can also create Auto Pay with your bank, which will directly debit your SIP amount.
C. Never share your Groww App PIN or other information with anyone else.
E. Make sure to log out of your account once your work is done for the day.
F. While investing in any SIP, make sure that you don’t put all your eggs in one basket. Diversify your portfolio and invest in different schemes for better returns.
How to Use the Groww App for Investment in Shares
Let us now understand how to buy shares via the Groww app.
1. Once you have logged in to your Groww account, you will get a complete overview of all the shares and stocks on the dashboard.
This will give you an overview of the market. Which stocks are the top gainers for the day, and which are the top losers? You will also learn which stocks are the most popular on the Groww app.
You can search for your pick by using the filter or screener option or by directly typing the name of the stock that you want to invest in.
2. Once you have decided which stock to buy, you can decide whether you want to hold it for the long term or trade it.
If you want to buy it for the long term, select delivery and intraday if you want to hold it for one day.
3. Now you have to enter the quality or number of shares you want to buy.
You can enter any quality and then click on Add Money.
4. For adding money, you have different types of options.
You can add money via UPIs, your bank, or directly from the Groww App wallet if you have a balance.
The moment you add money and make the payment, your buying order will be completed, and you will have ownership of those shares. Your order will be completed in a day, and you can view it on your dashboard.
So this is how you can use the Groww app for investing in shares.
Is the Groww app safe in India?
Groww is a legitimate and legal investment platform in India. It is a mobile application that allows users to invest in mutual funds, stocks, and other financial instruments. However, the regulatory environment for financial apps can change, and it’s essential to check for the latest updates.
To ensure the most accurate and up-to-date information, please verify Groww’s legal status by checking official sources such as the Securities and Exchange Board of India (SEBI) or contacting Groww’s customer support for the latest information on their regulatory compliance. Regulations and legal statuses can change, so it’s crucial to stay informed of the latest developments.
FAQs About How to Use the Groww App
Download the Groww app, open it, and follow the on-screen instructions to sign up using your mobile number and email.
After logging in, select ‘Mutual Funds’ from the menu, choose the fund you want to invest in, and complete the investment process by providing the necessary details.
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. Set up a SIP by selecting the fund and specifying the investment amount and frequency.
Go to the ‘Investments’ section to see a detailed view of your portfolio. It provides information on your holdings, current value, and performance.
Yes, you can trade stocks on Groww. Navigate to the ‘Stocks’ section, choose the stock you want to buy or sell, and follow the instructions to place your order.
The ‘Switch’ feature allows you to move from one mutual fund scheme to another within the same fund house. Use it to optimize your investment portfolio.
To withdraw, go to the ‘Withdraw’ section, enter the amount you want to redeem, and follow the steps to complete the withdrawal process.
Groww offers a variety of investment options, including mutual funds, stocks, gold, and more. Explore the ‘Invest’ section to discover and diversify your portfolio.
Navigate to the ‘Goals’ section, choose the type of goal you want to set (e.g., retirement, education), and follow the prompts to set your financial objectives.
Yes, Groww prioritizes the security of your data. The app employs robust encryption and security measures to protect your personal and financial information.