Groww, one of India’s fastest growing investment platforms has announced Direct (zero commission) mutual funds for its customers. So far, regular mutual funds were available on groww.in. However, from today, all funds would be Direct by default.
There are two types of mutual funds plans available to the investors – Direct and Regular. Regular plans have an indirect commission paid to the distributors while Direct plans have no commission. As a result, Direct plans have higher returns than Regular plans.
One can buy any Direct plan available on Groww app or website, without paperwork and within minutes. There are no charges for investing in Direct plans through Groww.
Investors do not need to open Demat account for investing on Groww. Investors, who have already invested in the Regular plans through any agent or platform, can move their investments to Direct plans and can start saving on the commissions, right away.
Lalit Keshre, CEO and Co-founder, Groww, says, “When the total investment amount gets larger, the difference between returns from direct and regular becomes significant. Groww is moving to direct mutual funds, to stay on course to add maximum value to our customers. This is aligned with our commitment to offer the best customer experience for financial products online.”
Groww is a technology company that offers a seamless and transparent approach to investing via a web platform and Android app. To educate and help new investors, Groww has build communities where experts answer all the questions before and after they invest.
Investors can invest in mutual funds from 34 leading fund houses, based on the recommendation from the experts on their various needs.
Groww started operations in April 2017 and is founded by ex-Flipkart employees with rich experience in engineering, product management, finance, e-commerce and business development. The company has raised seed round of funding led by Y Combinator, Mukesh Bansal and Ankit Nagori.
Over the last few years, there is a steady rise in mutual fund apps usage my customers. Other know apps in this segments are Wealthy, ETmoney, Goalwise, Fisdom etc. At the time of publishing this post there are close to 100 apps on play store.