Groww app has a user-friendly interface, making it easy for beginners to invest their money. I am going to cover all the investment options available in Groww app such as –
- Stock investment
- Mutual funds
- Sovereign gold bonds
- US stocks
Before getting into details of the different investment types available in Groww, let’s have a quick look at the benefits Groww app.
Groww App Benefits
- Easy to use: Groww app has a simple user interface making it easy to use for a beginner
- Low pricing: Groww charges no commission for investing in mutual funds. For stocks, it charges a minimal brokerage fee of just 0.05% or Rs 20 per order
- Free account: You don’t have to pay any account opening as well as an account maintenance fee. You can check out all Groww charges in this article which will include brokerage and fees.
- US stock investment: You can also open a US stock investment account within the Groww app at zero cost and start investing in the US stock market.
How to Invest in Stocks in the Groww App
Step 1 – Open a Groww Demat Account
You can install the Groww app from Google Play Store or Apple App Store. After installing the app, sign up for an account using your email id, mobile number, and PAN card number. Complete your KYC verification process.
KYC or Know Your Customer is a mandatory process to verify your identity and prevent fraudulent activities. You can complete your KYC process by submitting your Aadhaar card or PAN card details on the app.
Step 2 – Add Funds to Your Account
After completing the KYC process, you need to add funds to your account. You can do this by linking your bank account to the app and transferring the funds.
Step 3 – Add Stocks to Watchlist
After adding funds to your account, you can search for the stocks you want to invest in using the search bar on the app. You can search for stocks by their name or ticker symbol. For example, you can either search Hindustan Unilever or HUL.
You can add your favorite stocks to the watchlist. You can make multiple watchlists in the Groww app for different sectors or create your own criteria.
Step 4 – Analyze the Stock
Once you have found stocks you want to invest in, you can analyze your stocks to finalize for investment. To analyze stocks, you should consider different things like the
- company’s financial performance
- management quality,
- industry trends
- market conditions.
You can get this information from the company’s annual reports, and quarterly earnings reports available within the Groww app.
Step 5 – Buy Stocks
After reviewing the stock, click on the “Buy” button.
On the order window, Enter the number of stocks you want to buy and the price at which you want to buy them. You can select “Market” if you want to buy at the current market price.
Select the ‘Delivery’ option from the order type to buy and hold stocks in your demat account. Review the details and buy the order.
If you are a beginner then you must learn how the stock market works and focus on learning the art of picking the right stocks. You can start with a small amount of Rs 500 to invest in the stock market.
How to Invest in Mutual Funds in the Groww App
Step 1 – Open Account on the Groww App
To invest in mutual funds on the Groww app, you need to first set up an account on the app by following the steps mentioned earlier.
Step 2 – Search Mutual Funds
You see the “Explore” section by default when you log in to the Groww app which shows all the mutual funds available. You can search for mutual funds by their name, category, or fund house.
Step 3 – Review the Mutual Fund
Once you have found the mutual fund you want to invest in, you can review it by checking its past performance, fund manager, and expense ratio.
Step 4 – Pay One time or Initiate a SIP
Choose the mutual fund you want to invest in and select either the ‘One-time’ or ‘SIP’ option.
For Lumpsum investment, you can enter the amount you want to invest and click on “One-time” and then click on “Confirm”.
For SIP, enter the amount you want to invest through the SIP and the duration of the SIP. You can choose the frequency of your SIP (weekly, monthly, or quarterly).
Review the details and confirm the SIP. Before confirming, make sure to read and understand the terms and conditions and the investment objective of the mutual fund.
Once you confirm the SIP, the money will be auto-debited from your bank account as per the frequency chosen by you and invested in the selected mutual fund. You can also read our articles Upstox vs Groww and Groww vs Zerodha to compare the top discount brokers with Groww in detail.
How to Invest in IPO in Groww App
Step 1 – Log in to your Groww account on the app.
Step 2 – Go to the ‘IPO’ section by scrolling down the app, select the IPO you want to bid for and click on “Apply”.
Step 3 – Enter the details like the no. of shares, the price at which you want to bid, and the investment amount.
Step 4 – Enter your UPI ID to initiate the payment process.
You’ll receive a mandate on your UPI app to complete the payment.
Step 5 – Authorize the mandate on your UPI app.
Once the mandate is authorized, the bid will be placed on the stock exchange.
If the bid is successful, the shares will be credited to your Demat account. If the bid is unsuccessful, the blocked amount will be unblocked and credited back to your account.
You can track the status of your IPO application in the ‘IPO’ section on the app.
How to Invest in Sovereign Gold Bonds in Groww App
Step 1 – Log in to your Groww account on the app.
Step 2 – Go to the ‘SGB’ section by scrolling down the app.
Step 3 – Select the amount you want to bid for and click on “Apply”.
Pay the amount and your SGB application would be placed immediately. You’ll get an intimation once your SGB application has been approved and you’ll get the SGB transferred to your demat account.
If you want to understand how SGB investment works, read our guide on how to invest in sovereign gold bonds in India.
How to Invest in US Stocks in Groww
- Step 1 – Open the Groww app and log in to your account.
- Step 2 – On the app’s homepage, select the ‘US Stocks’ option.
- Step 3 – Click on the ‘Search Stocks’ button and enter the name of the US stock you want to invest in.
- Step 4 – Now click on the stock to view more details such as its price, market cap, and similar stats.
- Step 5 – If you are investing in US stocks for the first time, you will need to complete the one-time KYC process, which involves verifying your aadhar number.
- Step 6 – Once the KYC process is complete, you can add funds to your account to place an order.
- Step 7 – To add funds, go to the ‘Profile’ section on the app and click on ‘Add Funds.’
- Step 8 – After adding funds, select the US stock you want to invest in.
- Step 9 – Click on the ‘Buy’ button and enter the no. of shares you want to purchase.
- Step 10 – Review the details of your order and click on the ‘Confirm’ button. Once your order is confirmed, the app will deduct the investment amount from your account, and your US stock will be added to your portfolio.
You can track the performance of your investment in the ‘US Stocks’ section on the app.
Groww app comes free of cost and is easy to use. However, Groww charges 0.5% or RS 20 per order (whichever is lower) on equity delivery which might be disappointing for some investors like you and me, so you can go for a broker like Zerodha who offers free equity delivery if that is your prime concern.
Otherwise, Groww has improved its platform performance and customer support quality drastically in the past 2 years.
Investing in mutual funds on the Groww app is free of cost. There is no transaction charge or commission on mutual fund investments. Moreover, there is no account opening or annual maintenance fee.
However, if you decide to invest in stocks, you have to pay a brokerage fee of Rs. 20 per order, irrespective of the order size. This makes the Groww app one of the cheapest stockbrokers in India.
Yes, you can track your investment performance on the Groww app. The app provides a comprehensive dashboard that shows your portfolio’s value, your returns, and your investments’ performance.
Groww app offers a wide range of mutual funds. Some of the popular mutual fund categories available on the Groww app are:
Equity funds: These mutual funds invest primarily in equity and equity-related instruments. They are suitable for long-term investments and have the potential to generate higher returns than other mutual fund categories.
Debt funds: These mutual funds invest in fixed-income instruments such as government bonds, corporate bonds, and money market instruments. They are suitable for short-term investments and provide stable returns with lower risk.
Hybrid funds: These mutual funds invest in both equity and debt instruments. They are suitable for investors who want to balance risk and returns.
Tax-saving funds: These mutual funds offer tax benefits under Section 80C of the Income Tax Act. They have a lock-in period of three years.
Identify your investment goals and risk appetite: Your investment goals and risk appetite should guide your mutual fund investment decisions.
Understand the mutual fund categories: Before investing in a mutual fund, you should understand the mutual fund category and its investment objective.
Look at past performance: Past performance is not a guarantee of future performance, but it can give you an idea of how the mutual fund has performed in different market conditions.
Check the fund manager’s experience: The fund manager’s experience and track record are crucial factors in choosing the right mutual fund.
Look at the expense ratio: The expense ratio is the annual fee charged by the mutual fund company to manage your investment. A lower expense ratio means more of your money is invested, and less is spent on fees.
Yes, Groww app is safe for investing. The app is registered with the Securities and Exchange Board of India (SEBI) and follows all the regulations mandated by SEBI.
Moreover, Groww app uses bank-grade security to protect its users’ data and investments.
The minimum investment amount on Groww app varies depending on the asset you choose.
Yes, you can redeem your mutual fund investment anytime on Groww app except Tax-saver ELSS funds that come with a 3-year lockin period. However, some mutual funds may have an exit load if you redeem your investment before a certain period.
Yes, you can invest in direct mutual funds on Groww app.