A Beginner's Guide To Mutual Funds Via The Groww App

Investing in mutual funds through the Groww app is a simple process. Groww is an all-in-one dedicated stocks and mutual fund app that allows users to start a Systematic Investment Plan (SIP) or make a one-time lumpsum investment. The app facilitates 100% paperless investment in direct mutual funds for free. Here's a step-by-step guide to investing in mutual funds using the Groww app:

1. Log in to the Groww mutual fund app on your Android or iOS device.

2. Enter the scheme name and select the one that suits your investment goals. Groww provides various filters such as Asset Management Company (AMC), scheme type, returns, etc.

3. Tap on the Invest Now option.

4. Choose your preferred mode of investment, either SIP or One-time.

5. Enter the investment amount. If you select SIP, also choose the SIP date.

6. You will be redirected to the net banking portal of your bank account. Log in to your net banking account and make the payment for the investment amount.

7. Once the payment is processed, your MF investment is complete. The allotted mutual fund units will reflect in your Groww mutual fund account dashboard.

It is important to note that before investing in mutual funds, individuals should consider their financial goals, risk appetite, and perform thorough research about the different types of mutual funds available. Additionally, seeking advice from a financial advisor or conducting further research about the Groww app and its features is recommended.

Logging into the Groww app

The Groww app is a dedicated stocks and mutual funds app that allows users to start a Systematic Investment Plan (SIP) or make a one-time lump-sum investment. The app facilitates paperless investment in direct mutual funds for free. Here is a step-by-step guide to logging into the Groww app and investing in mutual funds:

• Download the Groww app: The first step is to download the Groww app on your device. The app is available for both Android and iOS users.
• Log in to the app: Open the Groww app on your device and log in to your account using your credentials. If you don't already have an account, you will need to create one by providing the required personal information.
• Enter the scheme name: Once you are logged in, enter the name of the mutual fund scheme you are interested in. Groww provides various filters to help you narrow down your choices, such as Asset Management Company (AMC), scheme type, returns, etc.
• Select your preferred scheme: After entering the scheme name, you will see a list of available mutual fund schemes that match your search criteria. Select the scheme that aligns with your investment goals and preferences.
• Tap on the "Invest Now" option: Once you have selected your desired scheme, tap on the "Invest Now" button to proceed to the next step.
• Choose your investment mode: Decide whether you want to invest through a Systematic Investment Plan (SIP) or make a one-time investment. A SIP allows you to invest a fixed amount at regular intervals, while a one-time investment is a lump-sum payment.
• Enter the investment amount: Specify the amount you want to invest. If you choose the SIP option, you will also need to select the date on which you want the SIP to start.
• Proceed to the net banking portal: After confirming your investment details, the app will redirect you to the net banking portal of your bank account.
• Log in to your net banking account: Use your net banking credentials to log in to your account securely.
• Make the payment: Once you are logged in to your net banking account, initiate the payment for the investment amount.
• Track your investment: After successfully making the payment, your MF investment is complete. You can track the progress of your investment by logging into your Groww mutual fund account dashboard, where the allotted mutual fund units will be reflected.

By following these steps, you can conveniently invest in mutual funds through the Groww app. The app simplifies the process of investing and provides users with a range of investment options to choose from.

Choosing a mutual fund

The first step in investing in mutual funds is choosing the mutual fund you want to invest in. This involves knowing the type of mutual fund and the Asset Management Company (AMC) that the fund belongs to. It is also important to keep in mind the amount you want to invest based on your financial goals, and whether you wish to go with a Systematic Investment Plan (SIP) or make lump sum deposits.

Mutual funds are an investment platform that pools money from several investors and invests these funds in various financial securities like bonds, stocks, shares, money market instruments, and gold. Small or individual investors have access to professionally managed portfolios of stocks, bonds, and other securities through mutual funds. As a result, each shareholder participates evenly in the fund's profit or loss.

There are several types of mutual funds, including:

• Equity Mutual Funds: Invest in stocks of publicly listed companies
• Debt Funds: Invest in debt instruments
• Arbitrage Funds: Invest in equity securities and take an equal and opposite position in derivatives of these equity securities
• Gilt Funds: Invest only in government bonds
• Gold Funds: Invest in various forms of gold, such as physical gold or stocks of gold mining companies
• Growth Funds: Reinvest any dividends that stocks may pay in the mutual fund for further growth
• Index Funds: Have a portfolio constructed to match or track the components of a market index
• Balanced Funds or Hybrid Funds: Invest in a mix of debt and equity

When choosing a mutual fund, it is essential to consider your financial goals and risk tolerance. Different types of mutual funds carry different levels of risk, so selecting a fund that aligns with your risk tolerance is crucial. It is also important to research the fund's performance history, expenses, and investment strategy to ensure it aligns with your goals.

Additionally, it is worth noting that mutual funds are run by investment professionals who allocate funds to generate revenue or capital gains for investors. Therefore, the fund manager's performance and expertise are vital factors in choosing a mutual fund. Their decisions largely influence the fund's performance, so researching their track record and investment style can provide valuable insights into the potential success of the fund.

Finally, diversification is a key aspect of investing. Mutual funds allow investors to diversify their portfolios by spreading their investments across multiple stocks, industries, or asset classes. This diversification helps to mitigate risk and maximize returns over time.

In summary, choosing a mutual fund involves careful consideration of your financial goals, risk tolerance, the fund's performance and expenses, the fund manager's expertise, and the level of diversification offered. Conducting thorough research and due diligence will help ensure that your investment decisions align with your investment strategy and objectives.

Selecting the Invest Now option

To select the "Invest Now" option on the Groww app, follow these steps:

• Open a mutual fund account: Sign up and create an account with Groww. You will need to provide personal information and complete the Know Your Customer (KYC) process.
• Choose the mutual fund: Decide on the mutual fund you want to invest in. Groww offers various mutual fund options, including Nifty Smallcap 250 Index Fund, NIFTY Total Market Index Fund, and Banking and Financial Services Fund.
• Select the "Invest Now" option: Once you have chosen the mutual fund, look for the "Invest Now" button or option within the app. This will initiate the investment process.
• Provide investment details: Specify the amount you want to invest and whether you prefer a Systematic Investment Plan (SIP) or lump-sum investment. You may also need to provide your bank account details to proceed with the investment.
• Review and confirm your investment: Carefully review the investment details, including the fund choice, amount, and payment method. Confirm the investment if all the details are correct.
• Complete the payment: Follow the instructions to make the payment and finalise your investment. You can use various payment methods, including net banking, UPI, or demand draft, depending on the platform you choose.

By following these steps and selecting the "Invest Now" option, you can start investing in mutual funds through the Groww app. Remember to consider your financial goals, risk appetite, and investment horizon before finalising your investment decisions.

Choosing the mode of investment

After logging in to the Groww mutual fund app on your phone and selecting the scheme of your choice, you will be prompted to choose the mode of investment. You can either opt for a Systematic Investment Plan (SIP) or a one-time lumpsum investment.

A Systematic Investment Plan (SIP) is a way of investing a fixed amount in mutual funds at regular intervals. It is a convenient and disciplined way of investing, as it allows you to invest a small amount periodically instead of a large sum at once. SIPs are typically done monthly, but other frequencies are also available. This method is suitable for investors who want to invest for the long term and benefit from the power of compounding.

On the other hand, a lumpsum investment is a one-time investment where you invest a large sum of money at once. This method is suitable for investors who have a significant amount of money to invest and want to see their investments grow faster.

It is important to note that both investment modes have their advantages and disadvantages, and the choice depends on your financial goals, risk appetite, and investment horizon. SIPs are generally considered less risky, as they average the cost of investing and reduce the impact of market volatility. On the other hand, lumpsum investments can be more profitable if the market is performing well, but they also carry a higher risk of loss if the market declines.

Once you have decided on the mode of investment, you will be directed to the net banking portal of your bank account to complete the payment process. After making the payment, your MF investment will be successfully completed, and the allotted mutual fund units will reflect in your Groww mutual fund account dashboard.

Making the payment

Once you have entered the investment amount and chosen the SIP date (if applicable), you will be redirected to your bank's net banking portal. Log in to your net banking account and make the payment of the investment amount.

After making the payment, you will receive a confirmation on your registered number or email ID. Once the request is processed, the allotted mutual fund units will appear in your Groww mutual fund account dashboard.

You can make the payment for your investment through net banking using all supported banks. Groww uses BSE Star MF (with Member code 11724) as its transaction platform.

Frequently asked questions