Groww App Review: Is it really safe?

15 Jan 2021  Read 704 Views

Mutual funds have taken over the Indian financial markets by storm. Their popularity has grown in recent times, and they've gone on to become the go-to investment option for many investors. 

With growing awareness of mutual funds, what benefits they bring to a portfolio, and the importance of regularly investing in mutual funds, investors now seek out the best platforms to invest in mutual funds. 

Here, we are reviewing one such platform which is helping investors invest in more than 300 mutual funds and also has portfolio tracking features. Let's get to know: Groww.

What is Groww App?

Groww is one of India's fastest-growing investment platforms, having launched in 2017 by former Flipkart employees, Harsh Jain, Lalit Keshre, Ishan Bansal, and Neeraj Singh. Groww has been able to make a place for itself amidst the fierce competition in the wealth management space. It has shown an impressive growth trajectory, as evidenced by its user base, which has grown from zero to 2 million since its launch.

Investors looking to invest in mutual funds can download the app hosted on the Android/iOS app stores. The investment process is free and straightforward, with no paperwork required; you simply just buy and sell. 

The app's best feature is that investors can directly invest in mutual funds, make SIP for free with zero commission, and track the invested mutual funds. Transparency and simplicity are the USPs of the Groww app.

Here are the documents you need to register on Groww?

Registration on Groww is effortless. Following is a list of important documents required for the registration process:

  • Aadhar card.
  • PAN card.
  • Bank details.
  • Internet banking.
  • Google account/Gmail.

So, what can you do on Groww App?

Groww provides investors with a plethora of features. The Groww Balance allows the investors to invest using UPI in just a single click. SmartSave helps the investors to get better returns compared to bank deposits. Let's look at some of the essential features:

  • Option to invest in any fund (SIP and one-time): Investors are presented with an option to invest in any fund from the entire product basket. They can make a lump-sum (one-time) payment for a fund or can set up a Systematic Investment Plan (SIP) in any of the funds. Making a SIP entails a fixed pre-decided amount getting directly debited from the linked bank account every month, which is then invested in selected mutual funds.
  • Investors can add more money to existing mutual funds: Investors can make further investments in the portfolios they have already invested in earlier with the Groww platform's help.
  • Redemption made easy with one-click: Groww platform makes it easy to redeem the accumulated units or money in mutual funds with just one click. The amount gets transferred to the bank account linked seamlessly.
  • Easy cancellation/stopping of an ongoing SIP: You can face a crisis or an emergency and cannot continue an ongoing SIP. Well, worry about that, not! Groww facilitates the cancelling/stopping of an ongoing SIP.
  • Investors can switch from regular funds to direct mutual funds: Investors can easily switch from regular to direct mutual funds through the Groww platform. Switching means selling the units of the current scheme and purchasing the units of the new scheme. Therefore, switching may attract taxes and exit loads.

                                 

The new Groww App features

  • Now you can invest via UPI: This feature was launched in May, and it quickly caught on. Now more than 50% of the transactions take place via UPI.
  • Portfolio Insight: Want to know how your investment portfolio is doing? Check the portfolio insight feature, which is an X-ray of your investments.
  • Compare mutual funds: This feature is especially for those investors who prefer to compare various funds before investing. Investors can compare up to 3 mutual funds at a time.
  • SIP Journey: Transparency is brought to the SIP process through this feature. Investors can view their payment history on the app through this feature.

Is it safe to invest through Groww App? 

The Groww platform is fully secure and reliable. Their website reads that they employ bank-grade security features on their platform. Groww operates the BSE Star MF transaction platforms, ensuring that all the transactions directly fund AMC. This is a reasonable assurance for the investors because if Groww was to shut down one day, investors could continue transacting with the AMC.

Groww is registered with SEBI under the name Finvantage Investment Advisor Private Limited with a registered office in Bangalore. Its SEBI registration number is INA20008981.

How Groww exactly make money?

As discussed earlier, Groww facilitates direct mutual fund transactions with the AMCs, which do not offer any commission. Groww charges no commission from its users for using their platform and availing their services. Groww does not charge any commission like many of its competitors. So, naturally, you might have a question about how does it make money? Well, the answer is simple! Groww makes money by providing premium features such as advisory services on investment and portfolio

What is so unique about the Groww platform?

Groww is more than just an app that is accessible on both web and a mobile platform. The user experience is similar in both mediums. Because of the app's ease of use, the app contributes approximately 75% to the business.

The app developers continuously stay in touch with the users daily, trying to understand their wants, likes, and needs. This helps them to deliver a better user experience. Groww is prompt in answering customer queries, which is appreciated by the investor-base.

The Final Verdict

In reviewing the Groww platform, we found an ideal investment platform for seasoned investors and millennials and novice investors. The user interface is simple and easy to navigate. There is a live chat option that allows investors to seek help from customer service.

The best part of the entire Groww experience is that there is no charge to use the platform. Since the platform allows direct dealing with the AMCs, middlemen are eliminated, which brings down the costs for the customers.

We suggest every individual who wishes to invest in mutual funds to try out this platform once because it will make the entire investment process simple and hassle-free.

Stay Positive, Test Negative,

Happy Investing!

About the Author: Shrey Salwan | 34 Post(s)

Shrey is an MBA student at FLAME University, Pune majoring in Finance. He is also pursuing Chartered Accountancy (CA) and Company Secretaryship (CS). He is a detail oriented, analytical and self motivated individual seeking to become a financial analyst. He has a knack for telling stories and does so through his quirky way of writing.

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