Is it Safe to Invest through Groww App?

Is it Safe to Invest through Groww App

Do you yearn to invest in mutual funds but have never done this before? Nowadays, mutual funds have become the go-to saving and investment prospect over the country. But, people encounter investing in mutual funds intricate, so they get doubtful about which is the best app to invest in mutual funds.

There are numerous apps available in the market through which you can easily install and undeviatingly invest in mutual funds without any hassle. Investing through mobile apps is relatively easy and convenient. But, the question that comes to mind is which app is reliable and safe as you invest your hard-earned money in mutual funds.

Don’t fret; there is a solution for you. There is an easy and reliable way for you to invest in mutual funds; Groww App. Investing becomes as simple as shopping online through this app. Still, there must be various questions coming to your mind that is the app safe? How much is their commission? How to invest in them?

Here are all the answers for you regarding the Groww app so that you can invest through them without any doubt in your mind.

Is it Safe to Invest through Groww App?

About Groww App?

Groww App | Is it Safe to Invest through Groww App

It is an android application from which you can comfortably spend in mutual funds. The most beneficial thing about this app is that it is simple, user-friendly, and free. For investing through this app, you would not need any paperwork, and you can invest in any company at any time.

You can buy and sell mutual funds anytime you want, plus you can also do SIP for free without paying any commission. Another advantage of investing through them is that you can also track the invested mutual funds to check the status or increase or decline in their prices.

How does Groww.in make money?

This is another question that kicks into everyone’s mind that how do they make money? A business cannot sustain itself without making earnings, and Groww app does not charge any commission from its users. The answer to this question is that they earn money by rendering advisory services and add-on premium features to its users.

Documents required for registering with Groww App

Doing registration with Groww App is very easy and simple. One thing that you would like the most about them is that there are only a few documents required for registering with them-

  • Aadhar Card
  • Pan Card
  • Bank Detail
  • Internet Banking
  • Gmail account

The significant advantage of investing through them is that it is very convenient, and there is the ease of transactions as well.

Also Read: 10 Best Discount Brokers in India

Commission Structure of Groww and their charges

For the mutual funds, they do not charge any commission. They do not take any fee or commission from its users for availing their services or doing any transaction through them. But, they take a cost for added benefits such as investment advisory, premium features on the platform, etc.

Their pricing structure for additional services are-

Transaction Charges 0.00325% of Total Turnover
STT 0.025% of Total Turnover
SEBI Turnover Charges 0.00005% of Total Turnover
Stamp Duty Depends on State (very minimal)
GST 18% of (Brokerage + Transaction Charges)

Charges for Groww Stocks

Depository Source CDSL
Account Opening Charges Free
Demat AMC Charges Rs.300 per Annum
Trading AMC Charges Free
Margin Money Zero
Offline to Online No
Brokerage Charge & Fees On Charge Amount Details
Equity Delivery Trading Zero
Equity Intraday Trading Rs.20 per Order
Commodity Options Trading N/A
Equity Futures Trading Rs.20 per Order
Equity Options Trading Rs.20 per Order
Currency Futures Trading Rs.20 per Order
Currency Options Trading Rs.20 per Order
Minimum Brokerage Zero
Demat AMC Charges Rs.300 per Annum
Trading AMC Charges Free
Margin Money Zero

Also Read: How to Start Investing in Share Market (Beginners Guide)

List of other charges by Groww as per their Pricing Page

Buy Stocks: ₹0 — No charges for buying stocks (any quantity)

Sell Stocks: 0.01% of order amount if intraday. DP prices are applicable for Demat delivery.

All Charges

  • Equity Delivery: Charged by the broker on buy orders when equity is delivered in Demat account. It is Zero on Groww.
  • Equity Intraday: Charged by the broker if you buy and sell on the same day. It will be charged Rs 20/- per executed order or 0.01% of order value, whichever is lower.
  • Clearing Charges: Charged by clearing members of NSSCL (clearing corporation of NSE) and ICCL (clearing corporation of BSE). It is Zero on Groww.
  • AMC (Account maintenance charges): For managing your account. It is ₹25/month + GST charged quarterly. Will not be charged for dormant accounts.
  • Account Opening Charges: Charged one time for opening trading and Demat account. It will be ₹200 on Groww from May 1st, 2020 onwards. It is FREE till April 30th, 2020.
  • DP Charges (Buy Order): Charged by DP for crediting stocks to Demat account. It is Zero on Groww.
  • DP Charges (Sell Order): Charged by DP for debiting stocks from Demat account. It is ₹8 + ₹ 5.50 (CDSL Charges) per ISIN (company/ETF) per day on Groww regardless of quantity sold.
  • Stamp Duty: Charged by the state government as stamp duty for contract note. It is different for each State, but the maximum is 0.018%.
  • SEBI Turnover Charges: Charged at 0.0001% by SEBI (Securities and Exchange Board of India) for regulating the markets.
  • Payment Gateway Charges: Charges for depositing money in Groww Balance. It is zero as of now.
  • Securities Transaction Tax (STT): Charged by the government when you transact on exchanges. It is 0.1% of the order amount in the case of equity delivery and 0.025% of the order amount in equity intraday.

Other Charges

  • Demat/Remat: Rs. 150 per certification + courier charges
  • Failed Off-Market Demat Transactions: Rs. 50 per ISIN
  • Pledge/ Unpledge of Demat Secutires: Rs. 20 + Rs. 12 per request (CDSL Charges)
  • Pledge Invocation: Rs. 20
  • Perodic/ Adhoc Demat Statement Request: Email: Free, Physical: Rs. 100 per request + Rs. 10 per page + courier charges
  • Account Modification Request: Rs. 50
  • KRA Upload/ Download: Rs. 50
  • Delivery Instruction Slip: First (10 leaves): Free
  • Addl (10 leaves): Rs. 100 + courier charges
  • Physical CMR(Client Master Report): Rs. 20 + Courier Charges
  • Physical Contract Note: Rs. 100 + Courier Charges
  • Courier Charges: Rs. 100 or actual, whichever is higher.

Is Groww SEBI listed?

It is a registered adviser in the name of Finvantage Investment Adviser Private Limited based out of Bangalore. Their registration number is INA20008981.

How to withdraw money from Groww?

Withdrawing money from Groww is very simple as when you open the app, you would see an option “Withdraw,” click on that and enter the amount that you wish to withdraw, and click ok. Once you finalize the amount, the amount will be automatically deducted from the app and credited to your account.

What can you do with Groww

What can you do with Groww?

Numerous things can be done through the Groww app; some of them are-

Invest in any fund- Through them, you have an option to invest in any mutual fund that you want through AMC. They also give you an option to do lumpsum investment or setup SIP in any fund. The fixed amount will be directly debited from your account and would be invested in the mutual fund selected by you.

Append more money in existing mutual funds- When you spend in mutual funds, you can also make further investments in the same folios with the Groww App if you aspire.

Redeem from any stock with the click of a button- If you wish to obtain your saved money in mutual funds, that can also be done through the Groww app in just a click. Once you select the amount, it will be instantly sent to the bank account combined with the AMC.

Cancel/Stop an ongoing SIP- In case if you face any business or personal difficulties, then you might want to omit or suspend the ongoing SIP’s in any mutual fund scheme. This can also be quickly done via the app, and you would not have to submit any papers or sign any documents for that.

Change from regular funds to Direct mutual funds-  By any chance, if you have funded in regular funds, but now you wish to shift to direct mutual funds, you can do this as well through the Groww App.

Groww Products

Equity Trading Yes
Commodity Trading Yes
Currency Trading Yes
Options Yes
Futures Yes
Mutual Funds Yes
Forex No
Banking No
SIP No
Insurance No

Is it Safe to Invest through Groww App?

You would be glad to know that the Groww app is entirely safe and secure and is also AMFI and BSE certified. If you examine their website, they have stated that user’s data is 100% safe, and they employ bank-grade security features on their program.

This app is clearly understandable and seamless; they have also accumulated $21.4 million in series B funding in 2019 from US-based VC firm Ribbit Capital and existing investors Sequoia India and Y Combinator.

Another point that rears the faith in them is that their app has got more than five million installs on Google Play Store with an average rating of 4.5 by over 50,000 people. Hence, you can rely 100% on this app to invest your hard-earned money.

Also Read: 10 Best Mutual Fund Apps to Invest Online in India (2021)

Groww Mutual funds

In today’s time, mutual funds have become the first thing people are looking to invest in. But, many people are not aware of where to invest, what platform to opt for, and where they can get the best advice on investing? Groww is one platform where you have an option of more than 3000 companies to invest in.

Also, on this app, you have the feasibility of tracking your portfolio. Thus, you can invest in mutual funds through the Groww app without any doubt in your mind.

What if Groww shuts down?

This is one thing that would, for sure, come to your mind while investing through this app. Remember that Groww or other such apps are just the brokers for AMC’s. If they close, then the only issue you would face is doing the transactions yourself or looking for another app for doing it.

Except that everything would remain the same as your investments are not dependant on them. They are just mediators; your money would be safe as you invested in another company, not on them.

Pros of Groww App

There are a lot of benefits of using this app as it makes the process of investment pretty easy, along with that there are some more advantages such as -.

  • User-friendly app
  • Reliable
  • No fee or commission charged
  • Up to 1% higher returns
  • Simple and intuitive UI

Cons of Groww App

Along with the advantages come some disadvantages as well. Although it has a very few drawbacks, let us have a look at them-

  • Support is not readily available by the app.
  • Would not be able to analyze funds technically and in-depth within the app

How is Groww compared to other Apps?

Groww vs. Kuvera

Both these apps are pretty similar as they are free and allow making investments in mutual funds’ direct plans. The significant difference that people find is that Groww is more user-friendly and intuitive as compared to Kuvera.

Groww vs. PayTM Money

People really like the UI of PayTM Money as their app offers a little more details than the Groww app. Another helpful thing about it is that it creates a financial layout with mutual funds. But, Groww provides better knowledgebase for its users.

Groww Customer Care number

There are various ways to get in touch with Groww, one is through their Help Page, or you can also email them directly at [email protected]. If you want immediate help or assistance, then you can avail their live chat option as their representative is available to help you with all your queries.

Recommended: 9 Best Stock Screeners For Indian Investors

We hope this article able to answer your question “Is it Safe to Invest through Groww App“. This app is an effortless solution to invest in mutual funds as its user interface is impressive; plus, there are no charges to pay for doing any transaction. Thus, even if you are new to investments and mutual funds, this app would make it easier for you to understand everything and invest easily.

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