If you are interested in trading, investment, the stock market, and mutual funds, then you must have heard of the name of the Groww App. If you don’t know what Groww App is, then this blog post is surely worth reading till the end. In this 3000+ word guide post, I will explain in detail what the Groww App is, how it works, who can use it, and what features and products to watch out for.
This is going to be a guide post, so make sure to take a cup of coffee or tea, sit back, and keep reading the blog post to learn more about Groww.
What is the Groww App?
Founded in 2016 by Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal, Groww App is an online investment platform in India that allows its users to invest in various types of securities like stocks, shares, mutual funds, commodities, futures and options, and other financial products. The company is headquartered in Bangalore, India, and is known for its user-friendly platform for investing in a wide range of financial products.
The cool thing about the Groww app is that it does not charge any commission on mutual fund investments. This makes it unique and sets it apart from other apps on the market. On top of that, it offers a wide range of investment tools and resources to help its users make wise and informed decisions about investment. For example, it offers fund performance data, expert insights, calculator tools, and various types of investment recommendations that might help beginners as well as expert traders.
Since its inception, the popularity of Groww App has gone up to another level, with over 1 crore users and partnerships with more than 35 different asset management companies, making it one of the most used financial apps in India. For its remarkable user experience, Groww App has also been rewarded with the 2019 India Digital Awards for being the best investment app in India.
Here are the general steps for using the app to invest in mutual funds:
A. Download the Groww app from the App Store.
B. Open the app and create an account by providing your basic information.
C. Complete the KYC (Know Your Customer) process by uploading your PAN card, Aadhaar card, and a photograph.
D. Once your KYC is approved, you can start investing in mutual funds, stocks or shares.
E. Select the payment method (UPI, net banking, or debit card) and complete the payment process.
F. Your investment will be processed, and you will receive a confirmation message.
How Does the Groww App Work and Make Money?
In order to understand how the Groww app works or makes money, you need to understand its business model first.
Growwapp generally works on a freemium business model, which enables its users to access the platform for free investment and generate revenue through other value-added services and add-ons. The platform allows users to invest in various financial assets like shares, stocks, mutual funds, and much more. It also offers free demand account opening and charges certain account maintenance fees and brokerage charges.
Besides, the company also offers some premium services, like tax planning, investment planning, trading services, and financial planning, for which they charge a certain fee. Moreover, Groww App also earns some commission for paid advertisements and from some asset management companies for listing them on top recommendations.
Here is a detailed overview of Groww App Revenue sources:
1) Mutual Fund Commission
This is where the majority of the revenue from Groww App comes in. It makes more than 50% of its total revenue from the commissions paid by asset management companies. When you opt for any mutual fund from Groww App’s top recommendation, that particular company pays a high commission to Groww App. In return, mutual fund companies get a huge customer base.
2) Additional services
It also offers some additional services to help investors make wise decisions about finance, helping them earn good returns and make money from the market.
3) Brokerage
Another major chunk of the revenue of Groww App comes through its brokerage charges and demand account maintenance. When a user places any stock or share option via Groww and decides to sell it, the Groww app charges a certain brokerage commission. That’s because you need a broker to sell your asset or shares to another party. The commission depends on the total value of your investment, and it is directly proportional to it. Meaning, if the value of your share and investment is higher, then the brokerage commission will be higher, and vice versa.
Moreover, Groww App also makes a decent amount of revenue through its partnership with various financial companies in India for advertisements and banner ads on the platform.
Is the Groww app legit in India?
The short answer to this question is yes. The Groww app is 100% safe and legal in India. It is a CDSL depository participant and a registered stockbroker with the Securities Exchange Board of India. It is also a prominent member of the BSE, NSE, and other stock exchanges in India.
They are also backed by all the legal memberships and accredited with the relevant license that is required for starting a stock trading business in India. Since the beginning, Groww App has had a clear vision of registering with SEBI and meeting all the compliance formalities.
Besides, Groww has always been focused on customer-first approach policies by offering their customers a transparent and seamless investment platform. They never compromise the quality of service, safety, data privacy, or anything else when it comes to investment.
Also, Groww App uses a single brokerage rate for all the customers to ensure the chopping off of any operational risk. Their simple pricing policy with no hidden fees sets them apart from other stock market platforms in India.
Groww App Company History and Founders Information
In the year 2016, four Flipkart employees—Lalit Keshre, Harsh Jain, Ishan Bansal, and Neeraj Singh—quitted their high-paying jobs to start a startup, making it easy for people to invest in mutual funds. This is how the Groww app started.
The founders of the company realized that there are close to 200 million people with investable income in India; however, only 20 million people are actively investing. They saw potential here and thought of bringing the other 180 million people to invest by making investing simple. This is when the Groww App started by offering resources, necessary information, and user experience to people, allowing them to start their investment journey in an easy way.
During the initial phase, the core founding team took a lot of time and effort to understand the market and identify the needs of users. They did a lot of experiments to figure out the right user experience, safety of the app, and security of the product because users hard hard-earned money was at stake.
In 2017, Groww commenced its journey as a platform dedicated to the distribution of direct mutual funds, and within a single year, it achieved the status of being one of the most widely favored platforms for mutual fund investments in the country.
Responding to user demands, Groww expanded its offerings in the first half of 2020, introducing stocks, digital gold, ETFs, intraday trading, and IPOs in rapid succession during the same year. Presently, Groww is trusted by more than 1.5 crore users spanning across 900+ cities in India for their investment needs.
In the upcoming months, Groww is set to introduce new features such as deposits, credit options, and US stock investments. Since its inception, Groww has placed significant emphasis on providing financial education content. Over the next two years, the company intends to roll out a series of financial education initiatives, primarily targeting millennials, with the goal of expanding the market for financial services.
Groww App Founders
1. Lalit Keshre, co-founder and CEO
Lalit is the co-founder and current CEO of Groww. Prior to starting the Groww app, he was working as a senior product manager at Flipkart, where he launched and led Flipkart Quick and Flipkart Marketplace. He has completed his graduation from IIT Bombay.
2. Harsh Jain, Co-Founder and COO
Harish is the co-founder and chief operating officer of Groww. Before Groww, he was also a part of Flipkart’s product management team and holds a B.Tech. degree in Electrical Engineering and a Master of Information and Communication from IIT Delhi.
3. Neeraj Singh, co-founder and CTO
Neeraj Singh is the Chief Technology Officer at Groww, and he is responsible for all the technical stuff and development of Groww. He was part of the Filpkart engineering team and built the Flipkart customer retrun and refund system. He holds a BE in Information Technology from ITM.
4. Ishan Bansal, co-founder and CFO
Ishan heads finance at Groww. He worked with Flipkart in the corporate development domain. After graduating from the BITS Pilani college he did his MBA in finance from XLRI Jamshedpur and also holds a CFA certification.
Groww App Features and Products
1) Stocks
If you want to invest in stocks and shares, then Groww App has got your back covered. At Groww, you can buy and sell shares of listed companies on the National Stock Exchange and the Bombay Stock Exchange.
In order to do this, you need to create a free Demat account with the Groww app. Once you have created your demat account, you need to complete the KYC by submitting the Addhar card and PAN card details, as well as linking your bank account. After submitting all these documents, you might need to wait for 2–3 days for verification.
There are two ways in which you can buy and sell shares on the Groww app. First, you can buy shares, hold them for the long term, say about 5–10 years, and then sell them at a higher price. Or, you can do day trading and buy and sell shares within one day.
Another benefit of investing in stocks via the Groww app is that you get different types of orders, which are as follows:
A. Market order: In this type of order, you can make an order, and it will be executed immediately at the current market price.
B. Limit order: In this type of order, you can modify the price, and the order will be activated immediately. However, it will be executed only when the seller is available at your price.
C. Stop loss market order: Stop loss market order is a slightly tricky concept; hence, I would suggest you look at the web and do a bit more research on it. Example of a stop-loss market order: I’m trying to place a stop-loss market (SLM) buy order at 590. My order will be activated in the market at price 590, and it will be executed at the market price. During a stop-loss order, you will notice a trigger price, which will be $590. For the SLM order, I can’t change the price.
D. Stop loss limit order: In a stop loss limit order, you can buy or sell a stock once it reaches a certain price. This is done in order to lose your money. For example, you can set up a stop-loss at 10% below the price at which you bought the share. This will limit your loss by 10%.
2) Mutual Funds
Groww App was first solely a place to buy and invest in mutual funds in India. Later on, they diversified their business into more investing. I am personally using the Groww App for investing in mutual funds and have three SIPs started for long-term purposes.
On the Groww app, you will come across 500+ mutual funds to invest in. You can either start your SIP, which means investing a certain amount every month for 5–10 years, or else you can invest a lump-sum amount and keep it for the long term.
Another good thing about investing in mutual funds via the Groww app is that they charge zero commission and have a very hassle-free investment process. Within a few clicks, you can start your SIP and enjoy investing.
The Groww App also gives you advanced filters to help you find the best-suited mutual funds for you.
You can select from equity mutual funds, debt mutual funds, hybrid mutual funds, and many other types of funds. You can also sort by low-risk, medium-risk, and high-risk mutual funds, or select the mutual fund company.
What’s more? You can also watch the past performance of every mutual fund and get key insights on fund managers, expensive ratios, portfolios, company investments, NAV, and a lot more critical information about each and every mutual fund.
3) Future and Options
Yes, you can also invest in futures and options via the Groww app and make a good income via trading.
Trading in options and the future is done with the aim of speculating and generating profits in the future. These are mostly called derivative contracts that derive their value from assets like stocks, shares, commodities, and currencies.
Futures and option trading are done with margin and leverage. These two features allow you to make more money with less investment, and vice versa, because they carry a high risk of loss. That being said, trading in futures and options via the Groww app can be done with a few thousand rupees in India.
However, I would not recommend doing options trading via the Groww App because it lacks certain advanced features that many other competitors and alternatives to the Groww App offer. With the Groww App, you can expect the following features while trading in Futures and Options: a custom strategy builder, a margin on option buying, trading view charts, instant withdrawals, and a lot more.
4) Credit
Another good thing about the Groww App is that it offers an online credit facility with instant approval. With an instant approval facility, you can get an easy loan right from your bank account. You can learn what to expect from your loan by using a business loan calculator.
5) Demat account
One of the standout features is the absence of account opening charges. Traditional brokerage firms often charge hefty fees for this initial step, which can be a deterrent for potential investors. Groww removes this obstacle entirely.
The Groww App presents an intuitive and user-friendly interface that caters to both beginners and seasoned traders. Its streamlined design allows you to buy and sell securities with ease, even if you’re new to the world of investing.
The free Demat account provides access to a broad spectrum of investment opportunities. You can explore stocks, mutual funds, ETFs, IPOs, and even sovereign gold bonds, allowing you to diversify your portfolio and optimize your investment strategy.
6) Calculators
SIP Calculator (Systematic Investment Plan): This calculator helps users determine how much they need to invest in a mutual fund SIP to achieve their financial goals. Users can input their investment amount, tenure, and expected rate of return, and the calculator will estimate the potential corpus.
RD Calculator (Recurring Deposit): RD calculators help users plan their monthly recurring deposits at a bank or post office. It calculates the maturity amount based on the deposit amount, tenure, and applicable interest rates.
NPS Calculator (National Pension System): The NPS calculator assists users in planning their retirement savings. It provides an estimate of the retirement corpus based on the user’s contributions and market returns.
HRA Calculator (House Rent Allowance): This calculator helps users determine the HRA exemption they can claim for income tax purposes. Users input their basic salary, actual rent paid, and HRA received to get the exemption amount.
FD Calculator (Fixed Deposit): Users can calculate the maturity amount of a fixed deposit by entering the principal amount, tenure, and the applicable interest rate.
PPF Calculator (Public Provident Fund): This calculator assists users in estimating the maturity amount of their PPF investments. It takes into account the principal amount, tenure, and the fixed annual interest rate.
EPF Calculator (Employee Provident Fund): EPF calculators help users estimate their EPF balance over time. Users can input their monthly contribution and the interest rate to calculate their future EPF corpus.
Income Tax Calculator: An income tax calculator assists users in estimating their income tax liability based on their income, deductions, and exemptions. It provides an estimate of the income tax payable or refundable.
GST Calculator (Goods and Services Tax): This calculator helps users calculate the GST amount for a given transaction. Users enter the transaction amount and the applicable GST rate to get the GST amount.
APY Calculator (Atal Pension Yojana): APY calculators help users plan for their pension under the Atal Pension Yojana. Users can input their age, desired pension amount, and tenure to estimate the monthly contribution required.
TDS Calculator (Tax Deducted at Source): TDS calculators help users determine the TDS that will be deducted from their income. Users input the income type, income amount, and TDS rates to calculate the TDS deduction.
Features of the Groww App in India
1) Amazing user interface
One of the best things that I love about the Groww App is its smooth and easy-to-use interface, which makes it one of a kind and better than its competitors. Both the Groww app and web platform are very light and simple to use, with easy navigation and flow. Within a few clicks, you can open your demat account, order shares, buy stocks, and start your SIPs.
Even a beginner or a teenager can easily understand this app and kick-start your journey towards wealth creation. The dashboard also looks very intuitive, with smart features and a portfolio analysis tab where you can get day-to-day updates on your investments.
2) Charting
Another feature of the Groww App is its charting tool, which will help you with technical analysis. These charting tools graphically present the historical stock price movement over the period. There are 10+ various charting tools available, like Heiken Ashi, Candlestick, line, bar, etc. So, by levering these tools, you can surely make some good profits in day trading.
3) Real-time market data
If you have been in the market for a long time, then you must be aware of the importance of real-time data and market reports. The Groww App not only offers real-time data but also gives you the latest news in the market about companies, takeovers, economics, and a lot more that might help you in your trading and investing journey.
4) Complete paperless
Groww App is 100% and completely paperless. You can open your account with a simple process and complete your KYC by filing your bank details and verifying your PAN and Aadhar details.
5) One-click order placement
With the Groww app, you can place your stock orders with one click.
FAQs about the Groww App
The Groww app is a financial technology platform that allows users to invest in various financial instruments, including mutual funds, stocks, and more. It provides a user-friendly interface to help individuals manage their investments and grow their wealth.
The Groww app allows users to create an account, complete their KYC (Know Your Customer) process, and start investing in mutual funds, stocks, and other financial products. Users can research investment options, make transactions, and track their portfolio performance through the app.
Yes, the Groww app takes security seriously. It uses robust encryption and security protocols to protect your financial and personal information. Additionally, it complies with regulatory standards and follows stringent security measures.
The Groww app offers a wide range of investment options, including mutual funds, stocks, exchange-traded funds (ETFs), fixed deposits, and more. Users can choose from various asset classes to diversify their portfolios.
Yes, one of the primary features of the Groww app is the ability to invest in mutual funds. It provides a platform to browse, compare, and invest in a wide variety of mutual funds from different asset management companies.
The Groww app provides a user-friendly dashboard that allows you to track the performance of your investments. You can see real-time updates on your portfolio, including gains or losses, and access detailed reports on your holdings.
The minimum investment amount may vary depending on the specific investment option, but Groww typically allows you to start investing with relatively small amounts. It’s a user-friendly platform for both beginners and experienced investors.
Groww usually offers a commission-free model for investing in mutual funds. However, there might be charges or fees for certain financial services or premium features. It’s important to review the terms and conditions for specific details.
Yes, the Groww app provides a platform for buying and selling stocks on the stock market. You can create a demat account and link it to your Groww account to start trading in stocks.
Groww offers customer support services through various channels, including email, chat support, and a helpline number. You can typically find contact information within the app or on the official website.